612.1. Consider the following amortization schedule for a $1.0 million mortgage loan that fully amortizes in ten years: | Principal (L) | $1,000,000 | |---------------|------------| | Yield (y) | 6.0% | | Variable: (t) | IPMT (a) | PPMT (b) | PMT (c) | c/(1+y)^t (d) | t*b/L (e) | t*d/L (f) | |---|---|---|---|---|---|---| | 1 | $60,000 | $75,868 | $135,868 | $128,177 | 0.08 | 0.13 | | 2 | $55,448 | $80,420 | $135,868 | $120,922 | 0.16 | 0.24 | | 3 | $50,623 | $85,245 | $135,868 | $114,077 | 0.26 | 0.34 | | 4 | $45,508 | $90,360 | $135,868 | $107,620 | 0.36 | 0.43 | | 5 | $40,086 | $95,782 | $135,868 | $101,528 | 0.48 | 0.51 | | 6 | $34,340 | $101,528 | $135,868 | $95,782 | 0.61 | 0.57 | | 7 | $28,248 | $107,620 | $135,868 | $90,360 | 0.75 | 0.63 | | 8 | $21,791 | $114,077 | $135,868 | $85,245 | 0.91 | 0.68 | | 9 | $14,946 | $120,922 | $135,868 | $80,420 | 1.09 | 0.72 | | 10 | $7,691 | $128,177 | $135,868 | $75,868 | 1.28 | 0.76 | | | Sum: | **$1,000,000** | | | **5.98** | **5.02** | Each of the following statements is true EXCEPT, which is false? | Financial Risk Manager Part 2 Quiz - LeetQuiz