A couple that borrows $300,000 at an APR of 4.8% compounded monthly on a 30- year mortgage has a monthly payment amount of $1574. (a) Fill in the missing entries for the first two payments of the amortization schedule. mt # 0 1 2 Payment $1574 $1574 Interest Balance Reduction Unpaid Balance $300,000 (b) Approximately how much interest is paid during the first year? Hint: This can be done without making an amortization schedule.
A couple that borrows $300,000 at an APR of 4.8% compounded monthly on a 30- year mortgage has a monthly payment amount of $1574. (a) Fill in the missing entries for the first two payments of the amortization schedule. mt # 0 1 2 Payment $1574 $1574 Interest Balance Reduction Unpaid Balance $300,000 (b) Approximately how much interest is paid during the first year? Hint: This can be done without making an amortization schedule.
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
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Question
![A couple that borrows $300,000 at an APR of 4.8% compounded monthly on a 30-
year mortgage has a monthly payment amount of $1574.
(a) Fill in the missing entries for the first two payments of the amortization schedule.
Balance Reduction
Pmt #
0
1
2
Payment.
$1574
$1574
Interest
Unpaid Balance
$300,000
(b) Approximately how much interest is paid during the first year? Hint: This can be done
without making an amortization schedule.
(c) After making their payments for ten years, they refinance the loan at an APR of 3.6%
compounded monthly for 15 years, with a refinance charge of $2,000 included in the
amount refinanced. Find the new monthly payment.
(d) Find the amount saved by refinancing.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd90f20f1-69b1-40a4-b599-dc62599940c2%2F22590171-78af-484e-af4e-fc2259a7c644%2F7z5ev0mf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A couple that borrows $300,000 at an APR of 4.8% compounded monthly on a 30-
year mortgage has a monthly payment amount of $1574.
(a) Fill in the missing entries for the first two payments of the amortization schedule.
Balance Reduction
Pmt #
0
1
2
Payment.
$1574
$1574
Interest
Unpaid Balance
$300,000
(b) Approximately how much interest is paid during the first year? Hint: This can be done
without making an amortization schedule.
(c) After making their payments for ten years, they refinance the loan at an APR of 3.6%
compounded monthly for 15 years, with a refinance charge of $2,000 included in the
amount refinanced. Find the new monthly payment.
(d) Find the amount saved by refinancing.
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