Question

3 You have a mortgage of $73,000 at 9.75% for 30 years. Find the monthly payment and the total interest. Use Table 14-1 and enter the total interest as your answer.

TABLE 14-1 Monthly Payments to Amortize Principal and Interest per $1,000 Financed Interest Rate(%) 3.50 3.75 4.18 4.50 4.00 4.25 4.50 4.75 5.00 5.25 5.50 8.04 6.00 5.53 5.75 6.00 6.25 6.50 6.75 7.00 7.07 7.25 SO Monthly Payments (Necessary to amortize a loan of $1,000) 5 10 15 20 25 30 35 40 Years Years Years Years Years Years Years Years $18.19 $9.89 $7.15 $5.80 $5.01 $4.49 $4.13 $3.87 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03 18.42 10.12 7.40 6.06 5.28 4.77 4.43 18.53 10.24 7.526.195.42 4.92 4.58 4.34 18.64 10.36 7.65 6.33 5.56 5.07 4.73 18.76 10.48 7.78 6.46 5.70 5.22 4.89 4.66 18.88 10.61 7.91 6.60 5.85 5.37 5.05 4.83 18.99 10.73 6.74 5.21 4.99 19.11 10.86 8.18 6.88 6.15 5.68 5.38 5.16 19.22 10.98 8.31 7.03 6.30 5.84 5.54 5.33 19.34 11.11 8.44 7.17 6.45 6.00 5.71 5.51 19.45 11.23 8.58 7.31 6.60 6.16 5.88 5.68 19.57 11.36 8.72 7.46 6.76 6.33 6 .05 5.86 19.69 11.498.85 7.61 6.916.496.226.04 19.81 11.62 8.99 7.76 6.66 6.39 6.22 19.92 11.75 9.13 7.91 7.23 6.83 6.57 6.40 20.04 11.889 .28 8.06 7.397.00 6.75 6.59 20.16 12.01 9.42 8.21 7.56 7.176.936.77 20.28 12.14 9.56 8.37 7.72 7 .34 7.11 6.96 20.40 12.27 9.71 8.53 7.897.52 7.297.15 20.52 12.40 9.85 8.68 8.06 7.69 7.47 7.34 20.64 12.54 10.00 8.84 8.23 7.87 7.66 7.53 20.76 12.67 10.15 9.00 8.40 8.05 7.84 7.72 20.88 12.81 10.30 8.57 8.23 8.03 7.91 21.01 12.94 10.45 9.33 8.74 8.41 8.22 8.11 21.13 13.08 10.60 9.49 8.92 8.60 8.41 8.30 21.25 13.22 10.75 9.66 9.09 8.78 8.60 8.50 21.38 13.36 10.90 9.82 9.27 8.97 8.79 8.69 21.50 13.50 11.06 9.99 9.45 9.15 8.99 8.89 21.62 13.64 11.21 10.16 9.63 9 .34 9.18 9.09 21.75 13.78 11.37 10.33 9.81 9.53 9.37 9.29 21.87 13.92 11.53 10.50 9.99 9.72 9.57 9 .49 22.00 14.06 11.69 10.67 10.17 9.91 9 .77 9.69 22.1214.21 11.85 10.84 10.35 10.10 9 .96 9.89 22.25 14.35 12.01 11.02 10.54 10.29 1 0.16 10.09 22.38 14.50 12.17 11.19 10.72 10.48 10.36 10.29 22.50 14.64 12.33 11.37 10.91 10.68 10.56 10.49 22.63 14.79 12.49 11.54 11.10 10.87 10.76 10.70 22.76 14.94 2.66 11.72 11.28 11.07 10.96 10.90 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 10.25 10.50 10.75 11.00 11.25 11.50 11.75 12.00 12.25 12.50 12.75 13.00 9.16 buo ng Blog

Answer 1

given loan amount = $73,000

interest = 9.75%

term = 30 years.

so , in table 14.1 ,look at the 30 years column of 9.75% row.

we have the monthly payment factor as $8.60 per $1,000

since the loan amount is 73,000.

the monthly payment on mortgage = $8.60 *73,000/1,000

=>$627.80.

total interest = total payments - loan amount

=>($627.80*30 years* 12 months) -73,000

=>$153,008.