To purchase a house, a homebuyer takes out a mortgage, borrowing $260,000 at the annual interest rate 3.9%, compounded monthly for 30 years. (The problem has four parts.)
(a) Calculate the monthly payment. Show how to carry out the calculation.
(b) Complete the following table. (Round amounts to the nearest cent.) Show the calculations necessary to arrive at the entries in the table.
(c) Calculate the total interest paid if the loan is held for the entire term. Show some work.
(d) Calculate the unpaid balance after 3 years. What percentage of the amount borrowed is still unpaid?