Problem:
Determine the annual repayment schedule for the first two years (i.e., interest, principal repayment, and balance owed) for each of the following. (Assume that only one payment is made annually.) Compare the payments required by each mortgage. What conclusions can you draw?
A) $100,000 conventional mortgage for 25yrs at 5%
B) $100,000 conventional mortgage for 20yrs at 5%
C) $100,000 conventional mortgage for 25yrs at 6%
Note: Please show guided help with steps and answer.