1. The Zaidis arrange a mortgage amortized over 30 years at 9% per year compounded semi-annually. Here is part of an amortization table for the mortgage. Payment Number Monthly Payment Interest Principal Outstanding Paid Paid Balance 0 $80,000.00 1 634.27 589.05 79,954.78 2 79,909.23 a) Complete the row for payments 1 and 2. Explain why the interest payments decrease each month while the principal payments increase each month. b) How much interest will the Zaidis pay over the life of the mortgage?
1. The Zaidis arrange a mortgage amortized over 30 years at 9% per year compounded semi-annually. Here is part of an amortization table for the mortgage. Payment Number Monthly Payment Interest Principal Outstanding Paid Paid Balance 0 $80,000.00 1 634.27 589.05 79,954.78 2 79,909.23 a) Complete the row for payments 1 and 2. Explain why the interest payments decrease each month while the principal payments increase each month. b) How much interest will the Zaidis pay over the life of the mortgage?
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 5SE: What is an annuity?
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Transcribed Image Text:1. The Zaidis arrange a mortgage amortized over 30 years at 9% per year compounded semi-annually.
Here is part of an amortization table for the mortgage.
Payment
Number
Monthly
Payment
Interest
Principal Outstanding
Paid
Paid
Balance
0
$80,000.00
1
634.27
589.05
79,954.78
2
79,909.23
a) Complete the row for payments 1 and 2. Explain why the interest payments decrease
each month while the principal payments increase each month.
b) How much interest will the Zaidis pay over the life of the mortgage?
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