You plan to purchase a $220,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 4.75 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Req B2 Total Interest Construct the amortization schedule for the mortgage? Note: Round your intermediate calculations and final answers to 2 decimal places. (e.g. Real-World Amortization Month Total Payment Interest Principal Remaining Balance 1 696.67 672.32 175,327.68 2 175,327.68 694.01 1,347.30 174,652.70 3 691.33 173,975.05 179 10.77 1,363.59 180 5.40 176,000.00 0.00
You plan to purchase a $220,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 4.75 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Req B2 Total Interest Construct the amortization schedule for the mortgage? Note: Round your intermediate calculations and final answers to 2 decimal places. (e.g. Real-World Amortization Month Total Payment Interest Principal Remaining Balance 1 696.67 672.32 175,327.68 2 175,327.68 694.01 1,347.30 174,652.70 3 691.33 173,975.05 179 10.77 1,363.59 180 5.40 176,000.00 0.00
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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Transcribed Image Text:You plan to purchase a $220,000 house using a 15-year mortgage obtained from
your bank. The mortgage rate offered to you is 4.75 percent. You will make a down
payment of 20 percent of the purchase price.
a. Calculate your monthly payments on this mortgage.
b. (1) Construct the amortization schedule for the mortgage.
b. (2) How much total interest is paid on this mortgage?
Complete this question by entering your answers in the tabs below.
Req A
Req B1
Amortization
Schedule
Req B2 Total
Interest
Construct the amortization schedule for the mortgage?
Note: Round your intermediate calculations and final answers to 2 decimal places. (e.g.
Real-World Amortization
Month
Total Payment
Interest
Principal
Remaining
Balance
1
696.67
672.32
175,327.68
2
175,327.68
694.01
1,347.30
174,652.70
3
691.33
173,975.05
179
10.77
1,363.59
180
5.40
176,000.00
0.00
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