Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate the monthly payment Part b. Determine the total amount paid, then figure out what percentage is paid towards the principal and what percentage is paid for interest. Please solve part A and B they go together. I included an example problem Exercise 20. Loan Payments A home mortgage of $400,000 with a fixedAPR of 3.5% for 30 years(20a) Calculate the monthly paymentРx(АPRРMТ[1-(1(-пY)APRn$400, 000 x0.03512(-12x30)[1-(10.03512$1, 796.18(20b) Determine the total amount paid over the term of the loan.$1.796.18 x 12 x 30 = $646, 624.35(20c) Of the total amount paid, what percentage is paid toward the principaland what percentage is paid for interest?$400, 000$646, 624.35$646, 624.35 - $400, 000$646, 624.35% toward principalx 100% = 61.85%%3D% toward interestx 100% = 38.15% O (20a) Calculate the monthly paymentAPRPxРMТ%3D[1-(1+APR72

The monthly payment can be derived from the following formula PMT=P×APRn1-1+APRn(-nY

Answered: Part a. Loan payments you borrow…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate the monthly payment Part b. Determine the total amount paid, then figure out what percentage is paid towards the principal and what percentage is paid for interest. Please solve part A and B they go together. I included an example problem

Exercise 20. Loan Payments A home mortgage of $400,000 with a fixed
APR of 3.5% for 30 years
(20a) Calculate the monthly payment
Рx(АPR
РMТ
[1-(1
(-пY)
APR
n
$400, 000 x
0.035
12
(-12x30)
[1-(1
0.035
12
$1, 796.18
(20b) Determine the total amount paid over the term of the loan.
$1.796.18 x 12 x 30 = $646, 624.35
(20c) Of the total amount paid, what percentage is paid toward the principal
and what percentage is paid for interest?
$400, 000
$646, 624.35
$646, 624.35 - $400, 000
$646, 624.35
% toward principal
x 100% = 61.85%
%3D
% toward interest
x 100% = 38.15% O

(20a) Calculate the monthly payment
APR
Px
РMТ
%3D
[1-(1+
APR
72

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