Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that repays the principal and the amount that constitutes interest expense to the borrower and interest income to the lender. Original amount of mortgage: 50000 Term of mortgage: 10 Interest rate: 0.08 Annual payment (use PMT function): ? Year Beg. Amt. Pmt Interest Principal End. Bal. 1 2 3 4 5 6 7 8 9 10 Create a graph that shows how the payments are divided between interest and principal repayment over time.
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that repays the principal and the amount that constitutes interest expense to the borrower and interest income to the lender.
Original amount of mortgage: 50000
Term of mortgage: 10
Interest rate: 0.08
Annual payment (use PMT function): ?
Year Beg. Amt. Pmt Interest Principal End. Bal.
1
2
3
4
5
6
7
8
9
10
Create a graph that shows how the payments are divided between interest and principal repayment over time.
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