Problem:  Please answer the following questions regarding a $300,000 Mortgage Loan with monthly amortization over 30 years and an annual interest rate of 6%.    What is the loan payment for a (30 year loan (360 monthly payments) of $300,000 at 6%?   Question Answer What is the monthly payment amount? Loan Monthly Payment: How much interest and how much is principle on the first payment? Interest: Principle: How much interest and how much is principle on the second payment? Interest: Principle: If after the second payment an addition $10,000 was paid on principle.  How much would the interest be on the third payment? Interest:

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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Problem:  Please answer the following questions regarding a $300,000 Mortgage Loan with monthly amortization over 30 years and an annual interest rate of 6%.    What is the loan payment for a (30 year loan (360 monthly payments) of $300,000 at 6%?  

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Answer

  1. What is the monthly payment amount?

Loan Monthly Payment:

  1. How much interest and how much is principle on the first payment?

Interest:

Principle:

  1. How much interest and how much is principle on the second payment?

Interest:

Principle:

  1. If after the second payment an addition $10,000 was paid on principle.  How much would the interest be on the third payment?

Interest:  

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