Use the following amortization chart:Selling price of homeDown paymentPrincipal (loan)Rate of interestYearsPayment per $1,000Monthly mortgage payment$ 79,000$ 6,000$ 73,0006%30$ 5.9955$ 437.67Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1).Note: Round your intermediate calculations and final answer to the nearest cent.Total cost of interest:???

Monthly Mortgage Payment A mortgage payment is composed of principal and interest. Early on in the mortgage's life, the borrower pays more interest, whereas the principle balance benefits in the last few years of the loan. The factors that affect monthly mortgage payments include the loan's size and length. Size refers to the amount borrowed by the company, and term refers to the time frame during which it must be repaid.We can use Excel Tools to solve the problem: Working in Excel; Answer:

Answered: Use the following amortization chart:…

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

Section: Chapter Questions

Problem 1PS

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Selling price of home	Down payment	Principal (loan)	Rate of interest	Years	Payment per $1,000	Monthly mortgage payment
$ 79,000	$ 6,000	$ 73,000	6%	30	$ 5.9955	$ 437.67

Selling price of home	Down payment	Principal (loan)	Rate of interest	Years	Payment per $1,000	Monthly mortgage payment
$ 79,000	$ 6,000	$ 73,000	6%	30	$ 5.9955	$ 437.67

TABLE 15.1

Amortization table (mortgage principal and interest per $1,000)

Rate	Interest Only	10 Year	15 Year	20 Year	25 Year	30 Year	40 Year
2.000	0.16667	9.20135	6.43509	5.05883	4.23854	3.69619	3.02826
2.125	0.17708	9.25743	6.49281	5.11825	4.29966	3.75902	3.09444
2.250	0.18750	9.31374	6.55085	5.17808	4.36131	3.82246	3.16142
2.375	0.19792	9.37026	6.60921	5.23834	4.42348	3.88653	3.22921
2.500	0.20833	9.42699	6.66789	5.29903	4.48617	3.95121	3.29778
2.625	0.21875	9.48394	6.72689	5.36014	4.54938	4.01651	3.36714
2.750	0.22917	9.54110	6.78622	5.42166	4.61311	4.08241	3.43728
2.875	0.23958	9.59848	6.84586	5.48361	4.67735	4.14892	3.50818
3.000	0.25000	9.65607	6.90582	5.54598	4.74211	4.21604	3.57984
3.125	0.26042	9.71388	6.96609	5.60876	4.80738	4.28375	3.65226
3.250	0.27083	9.77190	7.02669	5.67196	4.87316	4.35206	3.72541
3.375	0.28125	9.83014	7.08760	5.73557	4.93945	4.42096	3.79930
3.500	0.29167	9.88859	7.14883	5.79960	5.00624	4.49045	3.87391
3.625	0.30208	9.94725	7.21037	5.86404	5.07352	4.56051	3.94923
3.750	0.31250	10.00612	7.27222	5.92888	5.14131	4.63116	4.02526
3.875	0.32292	10.06521	7.33440	5.99414	5.20959	4.70237	4.10198
4.000	0.33333	10.12451	7.39688	6.05980	5.27837	4.77415	4.17938
4.125	0.34375	10.18403	7.45968	6.12587	5.34763	4.84650	4.25746
4.250	0.35417	10.24375	7.52278	6.19234	5.41738	4.91940	4.33620
4.375	0.36458	10.30369	7.58620	6.25922	5.48761	4.99285	4.41559
4.500	0.37500	10.36384	7.64993	6.32649	5.55832	5.06685	4.49563
4.625	0.38542	10.42420	7.71397	6.39417	5.62951	5.14140	4.57629
4.750	0.39583	10.48477	7.77832	6.46224	5.70117	5.21647	4.65758
4.875	0.40625	10.54556	7.84297	6.53070	5.77330	5.29208	4.73947
5.000	0.41667	10.60655	7.90794	6.59956	5.84590	5.36822	4.82197
5.125	0.42708	10.66776	7.97320	6.66881	5.91896	5.44487	4.90505
5.250	0.43750	10.72917	8.03878	6.73844	5.99248	5.52204	4.98870
5.375	0.44792	10.79079	8.10465	6.80847	6.06645	5.59971	5.07293
5.500	0.45833	10.85263	8.17083	6.87887	6.14087	5.67789	5.15770
5.625	0.46875	10.91467	8.23732	6.94966	6.21575	5.75656	5.24302
5.750	0.47917	10.97692	8.30410	7.02084	6.29106	5.83573	5.32888
5.875	0.48958	11.03938	8.37118	7.09238	6.36682	5.91538	5.41525
6.000	0.50000	11.10205	8.43857	7.16431	6.44301	5.99551	5.50214
6.125	0.51042	11.16493	8.50625	7.23661	6.51964	6.07611	5.58952
6.250	0.52083	11.22801	8.57423	7.30928	6.59669	6.15717	5.67740
6.375	0.53125	11.29130	8.64250	7.38232	6.67417	6.23870	5.76575
6.500	0.54167	11.35480	8.71107	7.45573	6.75207	6.32068	5.85457
6.625	0.55208	11.41850	8.77994	7.52950	6.83039	6.40311	5.94385
6.750	0.56250	11.48241	8.84909	7.60364	6.90912	6.48598	6.03357
6.875	0.57292	11.54653	8.91854	7.67814	6.98825	6.56929	6.12373
7.000	0.58333	11.61085	8.98828	7.75299	7.06779	6.65302	6.21431
7.125	0.59375	11.67537	9.05831	7.82820	7.14773	6.73719	6.30531
7.250	0.60417	11.74010	9.12863	7.90376	7.22807	6.82176	6.39672
7.375	0.61458	11.80504	9.19923	7.97967	7.30880	6.90675	6.48852
7.500	0.06250	11.87017	9.27101	8.05593	7.38991	6.99215	6.58071
7.625	0.63542	11.93552	9.34130	8.13254	7.47141	7.07794	6.67327
7.750	0.64583	12.00106	9.41276	8.20949	7.55329	7.16412	6.76620
7.875	0.65625	12.06681	9.48450	8.28677	7.63554	7.25069	6.85948
8.000	0.66667	12.13276	9.55652	8.36440	7.71816	7.33765	6.95312

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