You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR 9with semi-annual compounding) of 7.04%.
A. How much will you pay in interest, and how much will you pay in principal, during the first year ?
B. How much will you pay in interest, and how much you in pay in principal, during the the Twentieth year (i.e. between 19 and 20 years from now) ?
I have attached the screeshot of soultion caluclated using excel formula. For interest CUMIPMT and for principal CUMPRINC.
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