1. You found the perfect townhouse, that allows you to take public transit to work, for $325,000. The bank offered you a five-year fixed rate mortgage with an annual interest rate of 5.19% based on an amortization period of 25 years. (Use the Mortgage Calculator) a. What will the person's monthly payment be? b. What is the balance on the mortgage after 5 years? c. What is the total interest you will pay for this mortgage?

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.