Monthly payments for a 30-year traditional mortgage

1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage? ——
2. Prepare an amortization table for the first six months of the traditional 30-year mortgage. How mach of the first payment goes toward principal? oO
3. How bong would it take for S&S Air 0 pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the Mz
   traditional mortgage? How much interest would the company save?
4. Assume S&S Air takes out 8 bullet loan under the terms described. What arc the payments on the loan?

5, What are the payments for the interest-only loan? 21 at 9.50.36

1. Which mortgage is the best for the company? Are there any potential risks in this action?

Sample Solution