SHOW ALL THE DETAILS OF YOUR WORK TO EARN FULL OR PARTIAL CREDIT Consider a typical $1,000,000 Canadian mortgage contract.

SHOW ALL THE DETAILS OF YOUR WORK TO EARN FULL OR PARTIAL CREDIT

 Consider a typical $1,000,000 Canadian mortgage contract. Suppose that the current nominal interest rate is 6% and the maturity is set at 20 years. The rollover period is 3 years. The borrower and lender agree to an annual mortgage payment scheme. Find (i) the annual payments on this mortgage for the first three years and (ii) the amounts for the principal and interest components of each of these three annual payments.