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Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%.   a) What is your monthly payment?       N:  months I %:  P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12       b) Of the first month's mortgage payment, how much is interest?  HINT:  I=Prt   Interest: I=$       c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest   Amount Applied to Principal: $

Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%.   a) What is your monthly payment?       N:  months I %:  P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12       b) Of the first month's mortgage payment, how much is interest?  HINT:  I=Prt   Interest: I=$       c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest   Amount Applied to Principal: $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%.

 

a) What is your monthly payment?

 

 

 

N:  months

I %: 

P.V: $

PMT: $

F.V: 0

P/Y: 12

C/Y: 12

 

 

 

b) Of the first month's mortgage payment, how much is interest?  HINT:  I=Prt

 

Interest: I=$

 

 

 

c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest

 

Amount Applied to Principal: $ 

 

 

 

d) How much is your outstanding balance after the first month’s payment?  HINT: Principal - Amount Applied to Principal

 

Outstanding Balance after first payment: $

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