At the beginning of 2016, Mr. Greenspan decides to take advantage of the low interest rate and takes out a 30-year mortgage loan whose initial principal balance is $300,000. The quoted rate is 2% per annum, and Mr. Greenspan will make payments semi-annually.
1) What is Mr Greenspan's semi-annual payment?
2) How much does Mr. Greenspan need to pay toward interest during the second payment period (second half of the first year)?
3) What is Mr Greenspan's remaining balance at the end of the 5th year (i.e. after both payments during year 5)?
4) Mr Greenspan, a very graphical person, decides to plot remaining balance against time to maturity for his 30 year loan. What graph will Mr Greenspan's graph most closely resemble (with time on the x-axis and remaining balance on the y-axis)?