1 2 3 4 5 6 7 8 19 20 Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%. 9 Required: 10 Please use the above information and the provided Amortization Chart to answer the below questions: 11 12 Note: Use cells A4 to B7 from the given information to complete this question. 13 14 1. What is the principal (loan)? 15 2. How many total payments on this mortgage? 16 3. How much is their monthly payment? 17 4. How much of the first monthly payment is going towards interest? 18 5. How much of the first monthly payment is going towards principal? 6. After the first payment, what would be the balance of the principal? 21 22 Cost of home Down payment Term of mortgage Rate of interest 8 8 $560,000.00 60,000 25 6.38% 500000 300 $500,000.00 23 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your 24 Nothing in this area will be graded, but it will be submitted with your assignment. 25 26 300 $3,342.80 x $2,658.33 x
1 2 3 4 5 6 7 8 19 20 Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%. 9 Required: 10 Please use the above information and the provided Amortization Chart to answer the below questions: 11 12 Note: Use cells A4 to B7 from the given information to complete this question. 13 14 1. What is the principal (loan)? 15 2. How many total payments on this mortgage? 16 3. How much is their monthly payment? 17 4. How much of the first monthly payment is going towards interest? 18 5. How much of the first monthly payment is going towards principal? 6. After the first payment, what would be the balance of the principal? 21 22 Cost of home Down payment Term of mortgage Rate of interest 8 8 $560,000.00 60,000 25 6.38% 500000 300 $500,000.00 23 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your 24 Nothing in this area will be graded, but it will be submitted with your assignment. 25 26 300 $3,342.80 x $2,658.33 x
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:TABLE 15.1
Amortization table (mortgage principal and interest per $1,000)
Term
in
Years
120
15
17
20
22
25
30
35
INTEREST
3½% 5% 5%2%
9.89
8.52
6%
912% 10% 10%% 11%
10.61 10.86 11.11
9.25
12.94 13.22 13.50 13.78
11.67 11.96 12.25 12.54
10.45 10.75 11.06
11.37
7.15
7.91
8.18
7.56
8.99
8.12 8.40
9.28
8.69
6.52 7.29
10.86
6½% 7% 71% 8% 82% 9%
11.36
11.62 11.88 12.14 12.40 12.67
9.51 9.76 10.02 10.29 10.56 10.83 11.11 11.39
9.56 9.85 10.15
8.99 9.29 9.59 9.90 10.22 10.54
8.06 8.37 8.68 9.00 9.33 9.66 9.99
7.75 8.07 8.39 8.72 9.05 9.39 9.73 10.08
7.39 7.72 8.06 8.40 8.74 9.09 9.45
9.81
7.00
7.34 7.69 8.05 8.41 8.78 9.15 9.53
6.75 7.11
8.44 8.72
7.84
7.17
6.82 7.13 7.44
5.80 6.60
6.88
7.46 7.76
10.33
5.44 6.20 6.51
6.45
6.76 7.07
5.01 5.85 6.15
5.37
4.50
5.68
6.00
6.33
6.66
3.99
5.05
5.38 5.71 6.05
6.39
7.47
7.84 8.22 8.60 8.99
9.37
Transcribed Image Text:1
2
3
4
5
6
7
8
A
Cost of home
Down payment
Term of mortgage
Rate of interest
19
20
21
22
Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down
payment. They have a 30-year mortgage at a fixed rate of 6.00%.
17
4. How much of the first monthly payment is going towards interest?
18 5. How much of the first monthly payment is going towards principal?
6. After the first payment, what would be the balance of the principal?
B
9 Required:
10
Please use the above information and the provided Amortization Chart to answer the below questions:
11
12
Note: Use cells A4 to B7 from the given information to complete this question.
13
14
1. What is the principal (loan)?
15
2. How many total payments on this mortgage?
16 3. How much is their monthly payment?
$560,000.00
60,000
25
6.38%
500000
300
$500,000.00
D
300✔
$3,342.80 x
$2,658.33 X
E
23 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your w
24 Nothing in this area will be graded, but it will be submitted with your assignment.
25
26
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education