Problem:
You purchase a house that costs $500,000 with an 8% (APR), 30-year mortgage. You make a 20% down payment to avoid PMI insurance.
Required:
Question 1: What is your monthly payment?
Question 2: Amortize the first and second payments.
Question 3: What percentage of the mortgage is paid off after 5 years?
Note: Please show how to work it out.