Question

Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. Twenty​-year mortgage for ​$220,000 at 4.02​%; remaining balance after 12 years. The monthly payment is ​$.............. ​(Round to the nearest cent as​ needed.)

Answer 1

(a) Monthly Payment:

Loan amount, L =   $        220,000.00

Interest Rate, R % = 4.02

Remitting Frequency per year, N = 12

Time in Years, T = 22

Interest Rate per Period, ι = R/100N = 0.0034

Number of Periods, p = NT = 264

Installment, PMT = L * [ι + {ι / {((1 + ι)^p) - 1}}] = $1,256.76

(b) Amortization schedule:

After Monthly Payment Number	Total paid	Total paid towards Interest	Total paid towards Principal	Balance payable
1	$1,256.76	$737.00	$519.76	$219,480.24
2	$2,513.53	$1,472.26	$1,041.27	$218,958.73
3	$3,770.29	$2,205.77	$1,564.52	$218,435.48
4	$5,027.05	$2,937.53	$2,089.52	$217,910.48
5	$6,283.81	$3,667.53	$2,616.28	$217,383.72
6	$7,540.58	$4,395.76	$3,144.81	$216,855.19
7	$8,797.34	$5,122.23	$3,675.11	$216,324.89
8	$10,054.10	$5,846.92	$4,207.18	$215,792.82
9	$11,310.87	$6,569.82	$4,741.04	$215,258.96
10	$12,567.63	$7,290.94	$5,276.69	$214,723.31
11	$13,824.39	$8,010.26	$5,814.13	$214,185.87
12	$15,081.15	$8,727.79	$6,353.37	$213,646.63
13	$16,337.92	$9,443.50	$6,894.41	$213,105.59
14	$17,594.68	$10,157.41	$7,437.27	$212,562.73

...

140	$175,946.79	$83,298.28	$92,648.52	$127,351.48
141	$177,203.56	$83,724.90	$93,478.65	$126,521.35
142	$178,460.32	$84,148.75	$94,311.57	$125,688.43
143	$179,717.08	$84,569.81	$95,147.27	$124,852.73
144	$180,973.84	$84,988.06	$95,985.78	$124,014.22

Remaining balance = $124,014.22