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.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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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.)
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
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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