A family buys a house worth $326 000. They pay $110 000 down and then take out a 5-year mortgage for the balance at j2 = 6.5% to be amortized over 20 years. Payments will be paid monthly. Determine the outstanding balance at the end of 5 years and the owner’s equity at that time.
I'm unsure of how to solve this question.
Also, for a bond schedule, why is the interest on the book value multiplied by the bond yield rate and not the bond interest rate?