Question

Instructions You Have Decided to use a 25 year Amortization for your Mortgage. Use this information to find the MONTHLY mortgage PAYMENT using the mortgage amount from previous section and a rate of 3.18%. You must also determine the amount of INTEREST, PRINCIPAL and BALANCE owing for the mortgage after 1 Years and 1 Months. Input all the TVM variables and answers into the fields below. Mortgage Amount From Previous Question Amortization $464372.71 25 Years P/Y C/Y Present Value of Loan (PV P1 Months P2 Months BALANCE OWING (BAL) Number of Periods (N) Monthly Payment (PMT) Value At End of Loan (FV)- PRINCIPAL PAID (PRN) Mortgage Rate As % (I/Y) 3.18 INTEREST PAID (INT) Section Value: 7 Submit Answers

Answer 1

Amortization period (years) 25 235 Mortgage amount 236 464372.71 237 238 P/Y 239 P1 months 12 CNY 12 Present value of loan (PV) 464372.71 present wadue of loan (PV)_pz months P2 months P2 months 1 240 Monthly payment (PMT) | 2245.83 Balance owed 644552.87 241 Number of periods (N) 242 300 243 244 Mortgage rate as % (I/Y) 245 3.18% 246 247 Value at end of loan (FV) | 0.00 Principal paid 13410.04 Principal owed 450962.67 248 Interest paid 15785.74 Interest owed 209375.93

Formulas:

Note: The question asks that interest, balance, and principal OWED after 13 months be calculated while the input screen asks for interest PAID and principal PAID. For clarity, both sets of numbers have been calculated.