Question

Laura and Martin obtain a 25-year, $110,000 conventional mortgage at 8.5% on a house selling for $140,000. Their monthly mortgage payment, including principal and interest is $885.50. a) Determine the total amount they will pay for their house. b) How much of the cost will be interest? c) How much of the first payment on the mortgage is applied to the principal? 1. a) The total amount that Laura and Martin will pay for their house is $ (Round to the nearest dollar as needed.)

Answer 1

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- 2x I D PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Σ AutoSum : A Calibri -11AA = = = Dr Wrap Text General Ea Copy Fill 2 m Paste BIU D - A E F Merge & Center $ % 48.08 Conditional Format Format Painter Cell Insert Delete Format Sort & Find & Formatting as Table Styles 2 Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing HY180 fic 2 HQ HR HS HT HU HV HW HX HY HZ I A IB IC 162 163 164 165 PMT = 885.5 166 YEARS = 25 167 NO OF MONTHS = 300 168 169 TOTAL AMOUNT TO BE PAID = 265650 170 LESS : LOAN AMOUNT = 110000 171 TOTAL INTEREST TO BE PAID = 155650 172 173 AMOUNT OF FIRST INSTALMENT = 885.5 174 LESS : INTEREST ON FIRST INSTALMENT = 779.17 [110000 X 8.5%/12] 175 AMOUNT APPLIED TOWARDS PRINCIPAL = 106.33 176 106 [ROUNDED] 177 178 179 180 181 182 N LOAN OPTIONSpv, fv, annuity CAP STRU VALUE profit margin loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPONPER APR CPI ear FVA pva 52 53 0 Rea ferences B0 120% D Denne. F B * * 10 H 0 0 + ENG 23-11-2019