Consider a home mortgage of $150,000 at a fixed APR of 6% for 30 years.
-. Calculate the monthly payment.
-. Determine the total amount paid over the term of the loan.
- Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
a. The monthly payment is what?
(Do not round until the final answer. Then round to the nearest cent as needed.)
b. The total amount paid over the term of the loan is what?
(Round to the nearest cent as needed.)
c. Of the total amount paid, what % is paid toward the principal, and what % is paid for interest.
| a. | ||||||
| Monthly payment | =-pmt(rate,nper,pv,fv) | |||||
| = $899.33 | ||||||
| Where, | ||||||
| rate | = | 6%/12 | = | 0.005 | ||
| nper | = | 30*12 | = | 360 | ||
| pv | = | 1,50,000 | ||||
| fv | = | 0 | ||||
| b. | ||||||
| Total amount paid | = | Monthly Payment | * | Number of payment | ||
| = | $ 899.33 | * | 360 | |||
| = | $3,23,757.28 | |||||
| c. | ||||||
| Principal | 46.33% | |||||
| Interest | 53.67% | |||||
| Working: | ||||||
| Principal | = | Principal | / | Total repayment | ||
| = | 1,50,000.00 | / | 3,23,757.28 | |||
| = | 46.33% | |||||
| Interest | = | Total repayment | - | Principal | ||
| = | 3,23,757.28 | - | 1,50,000.00 | |||
| = | 1,73,757.28 | |||||
| Interest | = | Interest | / | Total repayment | ||
| = | 1,73,757.28 | / | 3,23,757.28 | |||
| = | 53.67% | |||||
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