Question

For the following loan, make a table showing the amount of each monthly payment that goes toward principal and interest for the first three months of the loan. A home mortgage of $145,000 with a fixed APR of 6% for 30 years. Fill out the table. New Principal End of... Payment Toward Interest Principal Month 1 (Round the final answers to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) $ $ Fill out the table. Payment Toward End of... Interest Principal Month 2 $ (Round the final answers to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) New Principal $ Fill out the table. End of... Payment Toward Interest Principal Month 3 $ $ (Round the final answers to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) New Principal $

Answer 1

Amount borrowed = $145,000
Annual interest rate = 6.00%
Monthly interest rate = 0.50%
Period = 30 years or 360 months

Let monthly payment be $x

$145,000 = $x/1.005 + $x/1.005^2 + … + $x/1.005^359 + $x/1.005^360
$145,000 = $x * (1 - (1/1.005)^360) / 0.005
$145,000 = $x * 166.791614
$x = $869.35

Monthly payment = $869.35

End of Month Beginning Amount Paid Interest Paid Principal Repaid New Principal Principal 145,000.00 $ 869.35 $ 725.00 $ 144.35 $ 144,855.65 144,855.65 $ 869.35 $ 724.28 $ 145.07$ 144,710.58 144,710.58 $ 869.35 $ 723.55 $ 145.80 $ 144,564.78 $ $ $ 2 3