Daniel and Jan agreed to pay $545,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment.They have a 25-year mortgage at a fixed rate of 63 %. (Use Table 15.1.)8a. How much is their monthly payment?Note: Do not round intermediate calculations. Round your answer to the nearest cent.Monthly paymentb. After the first payment, what would be the balance of the principal?Note: Do not round intermediate calculations. Round your answers to the nearest cent.Paymentnumber1Portion to-InterestPrincipalBalance of loanoutstanding Amortization table (mortgage principal and interest per $1,000)InterestOnly0.166670.177080.187500.197920.208330.218750.229170.239580.250000.260420.270830.281250.291670.302080.312500.322920.333330.343750.354170.364580.375000.385420.395830.406250.416670.427080.437500.447920.458330.468750.479170.489580.500000.510420.520830.531250.541670.552080.56250Rate2.0002.1252.2502.3752.5002.6252.7502.8753.0003.1253.2503.3753.5003.6253.7503.8754.0004.1254.2504.3754.5004.6254.7504.8755.0005.1255.2505.3755.5005.6255.7505.8756.0006.1256.2506.3756.5006.6256.75010 Year9.201359.257439.313749.370269.426999.483949.541109.598489.656079.713889.771909.830149.888599.9472510.0061210.0652110.1245110.1840310.2437510.3036910.3638410.4242010.4847710.5455610.6065510.6677610.7291710.7907910.8526310.9146710.9769211.0393811.1020511.1649311.2280111.2913011.3548011.4185011.4824115 Year6.435096.492816.550856.609216.667896.726896.786226.845866.905826.966097.026697.087607.148837.210377.272227.334407.396887.459687.522787.586207.649937.713977.778327.842977.907947.973208.038788.104658.170838.237328.304108.371188.438578.506258.574238.642508.711078.779948.8490920 Year5.058835.118255.178085.238345.299035.360145.421665.483615.545985.608765.671965.735575.799605.864045.928885.994146.059806.125876.192346.259226.326496.394176.462246.530706.599566.668816.738446.808476.878876.949667.020847.092387.164317.236617.309287.382327.455737.529507.6036425 Year4.238544.299664.361314.423484.486174.549384.613114.677354.742114.807384.873164.939455.006245.073525.141315.209595.278375.347635.417385.487615.558325.629515.701175.773305.845905.918965.992486.066456.140876.215756.291066.366826.443016.519646.596696.674176.752076.830396.9091230 Year3.696193.759023.822463.886533.951214.016514.082414.148924.216044.283754.352064.420964.490454.560514.631164.702374.774154.846504.919404.992855.066855.141405.216475.292085.368225.444875.522045.599715.677895.756565.835735.915385.995516.076116.157176.238706.320686.403116.4859840 Year3.028263.094443.161423.229213.297783.367143.437283.508183.579843.652263.725413.799303.873913.949234.025264.101984.179384.257464.336204.415594.495634.576294.657584.739474.821974.905054.988705.072935.157705.243025.328885.415255.502145.589525.677405.765755.854575.943856.03357

The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Answered: Daniel and Jan agreed to pay $545,000…

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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Daniel and Jan agreed to pay $556,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment. They have a 25-year mortgage at a fixed rate of 638638 %. (Use Table 15.1.) a. How much is their monthly payment? Note: Round your answer to the nearest cent. Monthly payment: b. After the first payment, what would be the balance of the principal? Note: Round your answers to the nearest cent. Payment number Portion to interest portion to principal Balance of loan outstanding 1 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625…

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