Question

You plan to purchase an $50,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.5 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 120th payment. c. Calculate the amount of interest and, separately. principal paid in the 150th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirments, do not round Intermediate calculations. Round your answer to 2 decimal places, (e... 32.16)) a b. Monthly payment Amount of interest Amount of principal Amount of interest Amount of principal Amount of interest paid d.

Answer 1

A Loan taken 45,000.00 =50000*(1-10%) 3 a) Monthly payment $ 417.16 =PMT(7.5%/12,15*12,-45000,0) 5 b) 120th payment: Amount of interest Amount of principal 131.90 =IPMT(7.5%/12,120,15*12,-45000) $ 285,26 EPPMT(7.5%/12,120,15*12,-45000) 9 c) 150th payment: 10 Amount of interest 11 Amount of principal | $ $ 73.27 343.89 =IPMT(7.5%/12,150,15*12,-45000) | =PPMT(7.5%/12,150,15*12,-45000) 13 Total repayment $ 75,088.00 622.82*30*12 15 d) Amount of interest paid $ 30,088.00 224215.17-81000

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