Question

Complete the first two months of each amortization schedule for a fixed-rate mortgage. Mortgage, $145,200; Interest rate, 7.4%; Term of loan, 12 years Fill out the amortization schedule below and round all values to the nearest cent. Payment Number Total Payment Interest Payment Principal Payment Balance of Principal $145,200 (d) $ (a) $ (b) $ (c)$| |

Answer 1

	EMI
	Loan Amount	145200
	Interest rate per period	0.61667%
	Number of periods	144
	EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
	Where,
	EMI= Equal Monthly Payment
	P= Loan Amount
	R= Interest rate per period
	N= Number of periods
	= [ $145200x0.006 x (1+0.006)^144]/[(1+0.006)^144 -1]
	= [ $895.3999032( 1.006 )^144] / [(1.006 )^144 -1
	=$1524.35
Therefore first payment would be $1524.35
First Month interest amount = $145200*0.074*1/12
	=$895.40
Principal payment = $1524.35-895.40
	=628.95
Balance Principal Amount = $145200-628.95
	=$144571.05