Homework Help is Here – Start Your Trial Now!
Business
Finance
9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 10 (d) Balance of principal Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 2.0% 5 17.52776 2.5% $ 17.74736 3.0% $17.96869 3.5% $ 18.19174 4.0% $ 18.41652 4.5% $18.64302 5.0% $18.87123 5.5% $ 19.10116 6.0% $ 19.33280 6.5% $19.56615 7.0% $ 19.80120 7.5% $ 20.03795 8.0% $ 20.27639 8.5% $ 20.51653 9.0% $ 20.75836 $9.20135 $ 9.42699 $ 9.65607 $ 9.88859 $10.12451 $10.36384 $10.60655 $10.85263 $11.10205 $11.35480 $11.61085 $11.87018 $12.13276 $12.39857 $12.66758 $ 7.14883 $ 7.39688 $ 7.64993 $7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $9.84740 $10.14267 (a) Total payment: (use the table above or the payment formula) 25 $5.05883 $4.23854 $5.29903 $4.48617 $4.74211 $5.00624 $5.27837 $ 5.54598 $ 5.79960 $ 6.05980 $6.32649 $ 6.59956 $6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 30 (c) Principal payment $5.55832 $5.84590 55.36822 $6.14087 $5.67789 $6.44301 $5.99551 $6.75207 $6.32068 $7.06779 56.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 58.04623 $3.69619 $3.02826 $3.95121 $3.29778 $4.21604 $3.57984 $4.49045 $3.87391 $4.77415 $4.17938 40 $5.06685 $4.49563 $4.82197 $5.15770 $5.50214 $5.85457 56.21431 $6.58071 $6.95312 $7.33094 $7.71361 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.)

9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 10 (d) Balance of principal Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 2.0% 5 17.52776 2.5% $ 17.74736 3.0% $17.96869 3.5% $ 18.19174 4.0% $ 18.41652 4.5% $18.64302 5.0% $18.87123 5.5% $ 19.10116 6.0% $ 19.33280 6.5% $19.56615 7.0% $ 19.80120 7.5% $ 20.03795 8.0% $ 20.27639 8.5% $ 20.51653 9.0% $ 20.75836 $9.20135 $ 9.42699 $ 9.65607 $ 9.88859 $10.12451 $10.36384 $10.60655 $10.85263 $11.10205 $11.35480 $11.61085 $11.87018 $12.13276 $12.39857 $12.66758 $ 7.14883 $ 7.39688 $ 7.64993 $7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $9.84740 $10.14267 (a) Total payment: (use the table above or the payment formula) 25 $5.05883 $4.23854 $5.29903 $4.48617 $4.74211 $5.00624 $5.27837 $ 5.54598 $ 5.79960 $ 6.05980 $6.32649 $ 6.59956 $6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 30 (c) Principal payment $5.55832 $5.84590 55.36822 $6.14087 $5.67789 $6.44301 $5.99551 $6.75207 $6.32068 $7.06779 56.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 58.04623 $3.69619 $3.02826 $3.95121 $3.29778 $4.21604 $3.57984 $4.49045 $3.87391 $4.77415 $4.17938 40 $5.06685 $4.49563 $4.82197 $5.15770 $5.50214 $5.85457 56.21431 $6.58071 $6.95312 $7.33094 $7.71361 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.)

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question
9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 5 (d) Balance of principal 10 2.0% $17.52776 $9.20135 2.5% $ 17.74736 $9.42699 3.0% $17.96869 $ 9.65607 3.5% $ 18.19174 $ 9.88859 4.0% $18.41652 $10.12451 4.5% $18.64302 $10.36384 5.0% $18.87123 $10.60655 5.5% $ 19.10116 $10.85263 6.0% $19.33280 $11.10205 6.5% $19.56615 $11.35480 7.0% $19.80120 $11.61085 7.5% $ 20.03795 $11.87018 8.0% $ 20.27639 $12.13276 8.5% $ 20.51653 $12.39857 9.0% $ 20.75836 $12.66758 $10.14267 (a) Total payment: (use the table above or the payment formula) Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 $7.14883 $ 7.39688 $ 7.64993 $ 7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $ 9.84740 $ 5.05883 $5.29903 $ 5.54598 $ 5.79960 $ 6.05980 $ 6.32649 $ 6.59956 $ 6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 25 $4.23854 $4.48617 30 (c) Principal payment $4.74211 $4.21604 $4.49045 $5.00624 $5.27837 $5.55832 $4.77415 $5.06685 $5.84590 $5.36822 $6.14087 $5.67789 $5.99551 $6.44301 $6.75207 $7.06779 $6.32068 $6.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 $8.04623 $3.69619 $3.02826 $3.95121 $3.29778 $3.57984 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.) 40 $3.87391 $4.17938 $4,49563 $4.82197 $5.15770 $5.50214 $5.85457 $6.21431 $6.58071 $6.95312 $7.33094 $7.71361 10
Transcribed Image Text:9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 5 (d) Balance of principal 10 2.0% $17.52776 $9.20135 2.5% $ 17.74736 $9.42699 3.0% $17.96869 $ 9.65607 3.5% $ 18.19174 $ 9.88859 4.0% $18.41652 $10.12451 4.5% $18.64302 $10.36384 5.0% $18.87123 $10.60655 5.5% $ 19.10116 $10.85263 6.0% $19.33280 $11.10205 6.5% $19.56615 $11.35480 7.0% $19.80120 $11.61085 7.5% $ 20.03795 $11.87018 8.0% $ 20.27639 $12.13276 8.5% $ 20.51653 $12.39857 9.0% $ 20.75836 $12.66758 $10.14267 (a) Total payment: (use the table above or the payment formula) Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 $7.14883 $ 7.39688 $ 7.64993 $ 7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $ 9.84740 $ 5.05883 $5.29903 $ 5.54598 $ 5.79960 $ 6.05980 $ 6.32649 $ 6.59956 $ 6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 25 $4.23854 $4.48617 30 (c) Principal payment $4.74211 $4.21604 $4.49045 $5.00624 $5.27837 $5.55832 $4.77415 $5.06685 $5.84590 $5.36822 $6.14087 $5.67789 $5.99551 $6.44301 $6.75207 $7.06779 $6.32068 $6.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 $8.04623 $3.69619 $3.02826 $3.95121 $3.29778 $3.57984 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.) 40 $3.87391 $4.17938 $4,49563 $4.82197 $5.15770 $5.50214 $5.85457 $6.21431 $6.58071 $6.95312 $7.33094 $7.71361 10
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Mortgage Amortization
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
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…
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
SEE MORE TEXTBOOKS