Erin Casey Purchased a Home with a $90,000 Mortgage at 9

question 74

Essay

Erin Casey purchased a home with a $90,000 mortgage at 9 1/2% for 30 years. Calculate the monthly payment and prepare an amortization schedule for the first four months of Erin's loan. $$\begin{array} { l l l l l } \text { Payment } & \text { Monthly } & \text { Monthly } & \text { Portion used to } & \text { Loan } \\\text { Number } & \underline { \text { Payment } } & \underline { \text { Interest } } & \underline { \text { Reduce Principal } } & \underline { \text { Balance } } \\& & & & \$ 90,000\\1&&&&&\\2&&&&&\\3&&&&&\\4&&&&&\end{array}$$

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Definitions:

Fundamental Questions

Basic questions that economies face regarding what to produce, how to produce, and for whom to produce, based on limited resources.

Unemployment

The failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force.

Barter System

An economic system where goods or services are directly exchanged for other goods or services without using money.

Coincidence of Wants

A situation in a barter system where two parties each have a good or service that the other desires, allowing for a direct trade.