What is the total interest paid over the life of the mortgage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
This amortization table shows the first 3
payments and the last 3 payments on a
mortgage.
Payment Monthly Interest PrincipalOutstanding
number payment paid
paid
balance
$120
000.00
$119
746.95
$119
492.58
$119
236.90
$1735.38
$869.43
$1.01
1
$874.94$621.89 $253.05
2
$874.94$620.58 $254.36
3
$874.94$619.26 $255.68
$874.94 $13.46 $861.48
$874.94
$874.94
238
$8.99 $865.95
$4.51 $870.43
239
240
What is the total interest paid over the life of
the mortgage?
Transcribed Image Text:This amortization table shows the first 3 payments and the last 3 payments on a mortgage. Payment Monthly Interest PrincipalOutstanding number payment paid paid balance $120 000.00 $119 746.95 $119 492.58 $119 236.90 $1735.38 $869.43 $1.01 1 $874.94$621.89 $253.05 2 $874.94$620.58 $254.36 3 $874.94$619.26 $255.68 $874.94 $13.46 $861.48 $874.94 $874.94 238 $8.99 $865.95 $4.51 $870.43 239 240 What is the total interest paid over the life of the mortgage?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education