Question

Questions 28-31 use the same data 28 Find mortgage payment N = 5 years, monthly payment, annuity due Interest rate = 2.9%, compounded monthly PV = 45,000 FV = 0 Compute PMT Round to 2 decimal places Amortization schedule after 3 years: same data as 228 P1 = 1 29 30 P2 = 36 Balance after 3 years of payments Total principal repayment after 3 yrs of payments Total interest payments after 3 yrs of payments Round to 2 decimal places 31

Answer 1

28

N = 5 * 12 = 60

I/Y = 2.9/12 = 0.2416666667

PV = 45,000

FV = 0

Compute PMT

PMT = -806.5929

Mortgage payment = $806.60

29. After 3 years of payment, we are left with 2 * 12 = 24 payments

N = 24

I/Y = 0.2416666667

PMT = -806.5929

FV = 0

CPT PV

PV = 18,785.50

This is the balance after 3 years of payment.

30. Total payment = 3 * 12 * 806.5929 = 29,037.34455

Total principal payment = 29,037.34455 - 18,785.50 = $10,251.84455

31. Total interest payment = 29,037.34455 - 10,251.84455 = $18,785.5

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