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02-06-2023
Business

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Consider a $225,000, 6 percent, 30-year, constant amortization mortgage (CAM) with monthly payments.
a What is the total payment that will be due on this mortgage in the first month? How much of this payment will be attributable to principal? How much to interest?
b How large will the payment on this mortgage be in the 30th month? How much of this will be attributable to principal? How much to interest?
c What will be the principal balance outstanding on this mortgage at the end of the sixth year?

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