I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.
II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount?
I. 326 000-75 000=251 000
interests=727 056-251 000=476056
II. the loan amortization schedule:
As part of the amount of payments, the principal amount and interest for using the loan