Prepare an amortization schedule for the mortgage of a house of 500,000 with 20% down payment. Interest rate is 5% compounded semiannually. The payments are done on monthly-basis for 2 years

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
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Prepare an amortization schedule for the mortgage of a house of 500,000 with 20% down payment.
Interest rate is 5% compounded semiannually. The payments are done on monthly-basis for 2 years
(A)
(B)
= Find PMT
(C)
' = Previous (E) x i
(D)
= (B) - (C)
Principal
Repaid
(E)
= previous (E) – (D)
Outstanding
Principal
Interest
Payment
number
Amount
paid
Paid
i=
Balance
1
2
3
4
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ТОTALS
PV
N
I/Y
CPT PMT
Transcribed Image Text:Prepare an amortization schedule for the mortgage of a house of 500,000 with 20% down payment. Interest rate is 5% compounded semiannually. The payments are done on monthly-basis for 2 years (A) (B) = Find PMT (C) ' = Previous (E) x i (D) = (B) - (C) Principal Repaid (E) = previous (E) – (D) Outstanding Principal Interest Payment number Amount paid Paid i= Balance 1 2 3 4 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ТОTALS PV N I/Y CPT PMT
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