You borrow a 20 year $218,000 mortgage loan at annual interest rate of 3.5%.
(a) What is the monthly mortgage payment ?
(b) Find the amount of principal paid , interest paid , and ending balance for the first month.
(c) Find the amount of principal paid, interest paid an d ending balance for the last month.(i.e.month 240)
(d)If you pay $240 more each month for the principal payment in addition to the monthly payment you calculate in part (a.) , you can pay off the loan in how many years or months ?
(e) You don't pay an extra amount each month. But your lender allows you to pay biweekly , you can pay off the loan in how many years or months ?
Solve the problem by using a financial calculator and show each step that was used to come to the answer.