Question

# You plan to purchase a \$130,000 house using a 15-year mortgage obtained from your local credit...

You plan to purchase a \$130,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 5.25 percent. You will make a down payment of 20 percent of the purchase price.

a.
Calculate your monthly payments on this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Monthly payment \$

b.
Construct the amortization schedule for the first six payments. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Amortization Schedule for first 6 payments (months)
Month Beginning Loan Balance Payment Interest Principal Ending Loan
Balance
1 \$ \$ \$ \$ \$
2
3
4
5
6

 a) We can use excel formula to calculate this PMT(r%,t,-P) Where=r%=monthly interest=5.25%/12; t=months=15*12=180; p=mortgage=130000*(1-20%)=\$104,000 =pmt(5.25%/12,180,-104000) \$836.03 b) Month Beginning loan balance Payment Interest Principal Ending loan 1 \$ 104,000.00 \$ 836.03 \$ 455.00 \$ 381.03 \$ 103,618.97 2 \$ 103,618.97 \$ 836.03 \$ 453.33 \$ 382.70 \$ 103,236.27 3 \$ 103,236.27 \$ 836.03 \$ 451.66 \$ 384.37 \$ 102,851.89 4 \$ 102,851.89 \$ 836.03 \$ 449.98 \$ 386.06 \$ 102,465.84 5 \$ 102,465.84 \$ 836.03 \$ 448.29 \$ 387.74 \$ 102,078.09 6 \$ 102,078.09 \$ 836.03 \$ 446.59 \$ 389.44 \$ 101,688.65

#### Earn Coins

Coins can be redeemed for fabulous gifts.