Consider a $58,331, 30-year mortgage at interest rate 12% compounded monthly with a $600 monthly payment.(a) How much interest is paid the first month?(b) How much of the first month's payment is applied to paying off the principal?(c) What is the unpaid balance at the end of 1 month?(a) The interest paid the first month is $.(Round to the nearest cent as needed.)(b) S of the first month's payment is applied to paying off the principal.(Round to the nearest cent as needed.)(c) The unpaid balance at the end of one month is $.(Round to two decimal places as needed.)

When a debt is repaid over a certain length of time, known as the amortization term, it is said to…

Answered: Consider a $58,331, 30-year mortgage at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A floating rate mortgage loan is made for $155,000 for a 30 -year perlod at an Initial rate of 12 percent interest. However, the borrower and lender have negotlated a monthly payment of $1,240. Required: a. What will be the loan balance at the end of year 1 ? b. If the interest rate increases to 13 percent at the end of year 2 , how much is the payment plus negative amortization in year 2 and year 5 if the payment remains at $1,240 ?
Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at the end of 14 months.
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