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

question 16

Essay

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

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Definitions:

Transform Fault

A type of fault where two tectonic plates slide horizontally past each other, typically associated with seismic activity.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, where new oceanic crust is created by volcanic activity.

Linear Island Chain

A series of islands arranged along a straight or nearly straight line, often formed by volcanic activity along a submarine ridge.

Fracture Zone

An area in oceanic or continental crust characterized by cracks and faults due to tectonic stresses, often associated with earthquake activity.