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Michael Sanchez purchased a condominium for $71,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.

Michael Sanchez purchased a condominium for $71,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.

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
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Michael Sanchez purchased a condominium for $71,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.)

Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments (Necessary to amortize a loan of $1,000) 15 20 25 30 5 10 Years Years Years Years Years 5.01 4.49 4.13 3.87 Interest Rate (%) Years 3.50 3.75 4.00 4.25 18.19 9.89 7.15 18.30 10.01 7.27 4.63 4.28 4.03 5.14 5.28 4.77 4.43 4.18 4.92 4.58 4.34 5.80 5.93 18.42 10.12 7.40 6.06 18.53 10.24 7.52 6.19 18.64 10.36 7.65 18.76 10.48 7.78 18.87 10.61 7.91 18.99 10.73 8.04 19.10 10.85 8.17 5.42 6.33 5.56 4.50 4.73 4.50 5.07 5.22 4.89 6.46 5.70 4.66 6.60 5.85 5.37 5.05 4.82 4.75 5.00 5.25 5.50 6.74 5.99 5.52 5.21 4.99 6.88 6.14 5.68 5.37 5.16 5.75 5.54 5.33 5.70 5.50 5.87 5.68 5.85 6.03 6.49 6.21 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 6.65 6.39 6.21 6.40 6.74 6.58 6.92 6.77 8.25 7.87 7.65 8.05 7.84 8.23 8.03 19.22 10.98 8.30 7.02 6.29 5.84 19.33 11.10 8.44 7.16 6.44 6.00 19.45 11.23 8.57 7.31 6.60 6.16 19.57 11.35 8.71 7.46 6.75 6.32 6.04 19.68 11.48 8.85 7.6 6.91 19.80 11.61 8.99 7.75 7.07 19.92 11.74 9.13 7.90 7.23 6.82 6.56 20.04 11.87 9.27 8.06 7.39 6.99 20.16 12.00 9.41 8.21 7.55 7.16 20.28 12.13 9.56 8.36 7.72 7.34 7.10 20.40 12.27 9.70 8.52 7.88 7.51 7.28 8.50 20.52 12.40 9.85 8.68 8.05 7.69 7.47 8.75 20.64 12.53 9.99 8.84 8.22 9.00 20.76 12.67 10.14 9.00 8.39 9.25 20.88 12.80 10.29 9.16 8.56 9.50 21.00 12.94 10.44 9.32 8.74 8.41 9.75 21.12 13.08 10.59 9.49 8.91 8.59 10.00 21.25 13.22 10.75 9.65 9.09 8.78 10.25 21.37 13.35 10.90 9.82 9.26 10.50 21.49 13.49 11.05 9.98 9.44 9.15 8.98 10.75 21.62 13.63 11.21 10.15 9.62 9.33 9.18 11.00 21.74 13.78 11.37 10.32 9.80 11.25 21.87 13.92 11.52 10.49 9.98 11.50 21.99 14.06 11.68 10.66 10.16 11.75 22.12 14.20 11.84 10.84 10.35 10.09 9.96 9.88 12.00 22.24 14.35 12.00 11.01 10.53 10.29 10.16 10.08 12.25 22.37 14.49 12.16 11.19 10.72 10.48 10.35 10.29 12.50 22.50 14.64 12.33 11.36 10.9 10.67 10.55 10.49 12.75 22.63 14.78 12.49 11.54 11.09 10.87 10.75 10.69 13.00 22.75 14.93 12.65 11.72 11.28 11.06 10.95 10.90 8.22 8.41 8.60 8.49 8.96 8.79 8.69 9.52 9.37 9.28 9.71 9.56 9.48 9.90 9.76 9.68 35 Years 40 Years 6.95 7.14 7.33 7.52 7.71 7.91 8.10 8.30 8.89 9.08
Transcribed Image Text:Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments (Necessary to amortize a loan of $1,000) 15 20 25 30 5 10 Years Years Years Years Years 5.01 4.49 4.13 3.87 Interest Rate (%) Years 3.50 3.75 4.00 4.25 18.19 9.89 7.15 18.30 10.01 7.27 4.63 4.28 4.03 5.14 5.28 4.77 4.43 4.18 4.92 4.58 4.34 5.80 5.93 18.42 10.12 7.40 6.06 18.53 10.24 7.52 6.19 18.64 10.36 7.65 18.76 10.48 7.78 18.87 10.61 7.91 18.99 10.73 8.04 19.10 10.85 8.17 5.42 6.33 5.56 4.50 4.73 4.50 5.07 5.22 4.89 6.46 5.70 4.66 6.60 5.85 5.37 5.05 4.82 4.75 5.00 5.25 5.50 6.74 5.99 5.52 5.21 4.99 6.88 6.14 5.68 5.37 5.16 5.75 5.54 5.33 5.70 5.50 5.87 5.68 5.85 6.03 6.49 6.21 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 6.65 6.39 6.21 6.40 6.74 6.58 6.92 6.77 8.25 7.87 7.65 8.05 7.84 8.23 8.03 19.22 10.98 8.30 7.02 6.29 5.84 19.33 11.10 8.44 7.16 6.44 6.00 19.45 11.23 8.57 7.31 6.60 6.16 19.57 11.35 8.71 7.46 6.75 6.32 6.04 19.68 11.48 8.85 7.6 6.91 19.80 11.61 8.99 7.75 7.07 19.92 11.74 9.13 7.90 7.23 6.82 6.56 20.04 11.87 9.27 8.06 7.39 6.99 20.16 12.00 9.41 8.21 7.55 7.16 20.28 12.13 9.56 8.36 7.72 7.34 7.10 20.40 12.27 9.70 8.52 7.88 7.51 7.28 8.50 20.52 12.40 9.85 8.68 8.05 7.69 7.47 8.75 20.64 12.53 9.99 8.84 8.22 9.00 20.76 12.67 10.14 9.00 8.39 9.25 20.88 12.80 10.29 9.16 8.56 9.50 21.00 12.94 10.44 9.32 8.74 8.41 9.75 21.12 13.08 10.59 9.49 8.91 8.59 10.00 21.25 13.22 10.75 9.65 9.09 8.78 10.25 21.37 13.35 10.90 9.82 9.26 10.50 21.49 13.49 11.05 9.98 9.44 9.15 8.98 10.75 21.62 13.63 11.21 10.15 9.62 9.33 9.18 11.00 21.74 13.78 11.37 10.32 9.80 11.25 21.87 13.92 11.52 10.49 9.98 11.50 21.99 14.06 11.68 10.66 10.16 11.75 22.12 14.20 11.84 10.84 10.35 10.09 9.96 9.88 12.00 22.24 14.35 12.00 11.01 10.53 10.29 10.16 10.08 12.25 22.37 14.49 12.16 11.19 10.72 10.48 10.35 10.29 12.50 22.50 14.64 12.33 11.36 10.9 10.67 10.55 10.49 12.75 22.63 14.78 12.49 11.54 11.09 10.87 10.75 10.69 13.00 22.75 14.93 12.65 11.72 11.28 11.06 10.95 10.90 8.22 8.41 8.60 8.49 8.96 8.79 8.69 9.52 9.37 9.28 9.71 9.56 9.48 9.90 9.76 9.68 35 Years 40 Years 6.95 7.14 7.33 7.52 7.71 7.91 8.10 8.30 8.89 9.08
(a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. Payment Number 0 1 2 3 4 $ $ $ $ Monthly Payment (in $) $ $ $ $ Monthly Interest (in $) Portion Used to Reduce Principal (in $) $ $ $ $ $ $ $ $ $ Loan Balance (in $) (c) If the annual property taxes are $1,670 and the hazard insurance premium is $640 per year, what is the total monthly PITI of Michael's loan (in $)? $
Transcribed Image Text:(a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. Payment Number 0 1 2 3 4 $ $ $ $ Monthly Payment (in $) $ $ $ $ Monthly Interest (in $) Portion Used to Reduce Principal (in $) $ $ $ $ $ $ $ $ $ Loan Balance (in $) (c) If the annual property taxes are $1,670 and the hazard insurance premium is $640 per year, what is the total monthly PITI of Michael's loan (in $)? $
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