Question

Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $190,000 20-year fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $ 1101.92. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for the loan is $ 74460.80 . (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest Principal Loan Balance nterest $ (Use the answer from part a to find these answers. Round to the nearest cent as needed.)

Answer 1

Monthly payment [Pxrx(1+r)^n]:[(1+r)^n-1] 8 9 10 Here, 3.5% 20 1 Interest rate per annum 2 Number of years 3 Number of compoundings per per annum 1:3 Interest rate per period (r) 2x3 Number of periods (n) Loan amount (P) 15 16 12 0.292% 240 190,000 Monthly payment $ 1,101.92 (1900000.292%*(1+0.292%^240)((1+0.292% 240-1) 21 Total interest on loan $ 74,460.80 =1101.92*12*20-190000

D45 45 D X f =+B45*3.5%/12 A B C D H 1 Payment Beginning balance Total Payment Interest payment Principal payment E nding balance 1 $ 190,000.00 $ 1,101.92 $ 554.17 | $ 547.76 $ 189,452.24 | 2 $ 189,452.24 $ 1,101.92 $ 552.57 $ 549.35 $ 188,902.89 47 3$ 188,902.89 $ 1,101.92 $ 550.97 $ 550.96 $ 188,351.93 46

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