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​(Components of an annuity​ payment) You take out a 25​-year mortgage for ​$280 comma 000 to...

​(Components of an annuity​ payment) You take out a 25​-year mortgage for ​$280 comma 000 to buy a new house. What will your monthly payments be if the interest rate on your mortgage is 7 ​percent? Use a spreadsheet to calculate your answer.  ​Now, calculate the portion of the 108th monthly payment that goes toward interest and principal. Use five decimal places for the monthly interest rate in your calculations?

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Answer #1

GIVEN-

Principal amount of loan (PV) $280,000.00
Number of Months (n) 300
Interest rate ( r ) 7%

Monthly installment (EMI) = $1,978.98 (refer attached image for excel formula )

Portion of Interest and Principal in 108th Installment

Principal Amount = $ 644.05

Interest Amount = $ 1,334.93

Formula for calculating Principal and Interest Amount in 108th Installment

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