Construct an Amortization Schedule for the First Three Months and the Final

question 43

Essay

Construct an amortization schedule for the first three months and the final three months of payments for a 30-year,7 percent mortgage in the amount of $90,000. What percentage of the third payment is principal?
What percentage of the final payment is principal?
What do these differences imply?
(Hint:
The balance after the 357^th payment is $1,775.56.)

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Definitions:

Altruistic Behavior

Selfless actions or behavior aimed at benefiting others without expecting anything in return.

Mere Exposure Effect

An effect in psychology where people start to prefer things just because they recognize them.

Companionate Love

A type of romantic relationship that includes strong commitment to supporting and caring for a partner.

Passionate Love

A type of romantic relationship that includes intense longing and sexual desire.