ent Monthly Interest er Payment Paid
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls help on this question. Pls show all steps and complete all parts pls I beg pls pls pls pls pls pls i beg.

Transcribed Image Text:1. The Zaidis arrange a mortgage amortized over 30 years at 9% per year compounded semi-annually.
Here is part of an amortization table for the mortgage.
Payment
Monthly
Interest
Principal
Outstanding
Number
Payment
Paid
Paid
Balance
$80,000.00
79,954.78
79,909.23
1
634.27
589.05
a) How much did the Zaidis borrow?
b) How much of the 1st payment is principal? How much is interest?
c) Complete the row for payment 2. Explain why the interest pavments decrease each
month while the principal payments increase each month.
d) How much interest will the Zaidis pay over the life of the mortgage?
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