Exercise

# Calculating interest and principal payments

Due to the size of the mortgage loan, you begin the mortgage in the initial period by paying mostly interest and retaining very little **principal**, or **equity** that goes towards the ownership of your home.

This means that if you were to stop paying your mortgage and sell your home after only a few years, the bank would actually own most of the home because what you paid was mostly interest, and very little principal.

`mortgage_loan`

, `mortgage_rate_periodic`

, and `periodic_mortgage_payment`

from the third exercise are available for use.

Instructions

**100 XP**

- Calculate the amount of the first loan payment that will go towards the mortgage interest based on the mortgage rate.
- Calculate the remaining amount of the first loan payment that will go towards the mortgage principal.