Question

You recently purchased a new home for $120,000 and have obtained a 7% loan for the...

You recently purchased a new home for $120,000 and have obtained a 7% loan for the full $120,000 with equal annual payments due at the end of each year for the next 30 years. Compute the amount of each annual payment and prepare the first year of the amortization schedule.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

the amount of each annual payment is $9,670.37.

Loan amount $120,000
Loan term (in years) 30
Interest rate 7.00%
Annual Loan payment $9,670.37

Calculation

first year of the amortization schedule

Loan amount $120,000
Loan term (in years) 30
Interest rate 7.00%
Annual Loan payment $9,670.37
Year Beginning balance Total payment Interest paid Principal paid Ending balance
1 $120,000 $9,670.37 $8,400.00 $1,270.37 $118,729.63

Calculation

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $49,000 at a 3% annual rate of...
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $49,000 at a 3% annual rate of interest to be repaid over 3 years. The loan is amortized into three​ equal, annual,​ end-of-year payments. a.  Calculate the​ annual, end-of-year loan payment. b.  Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a.  The amount of the​ equal,...
Loan amortization schedule  Personal Finance Problem Joan Messineo borrowed 41,000 at a 4​% annual rate of...
Loan amortization schedule  Personal Finance Problem Joan Messineo borrowed 41,000 at a 4​% annual rate of interest to be repaid over 3 years. The loan is amortized into three​ equal, annual,​ end-of-year payments. a.  Calculate the​ annual, end-of-year loan payment. b.  Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time.
You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and...
You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and repay it with four equal annual payments (first payment due one year from now). You decide that the ABC Company should pay 0.10 per year on the loan. a. What is the annual payment? b. Complete the following debt amortization table: Period Amount owed(beginnig of yr) Interest Principal Amount owed(end of yr) 1 $100,000 2 3 4 c. What would be the annual payment...
you purchased a car for $120,000 which will paid in equal monthly payments of $1576.1 over...
you purchased a car for $120,000 which will paid in equal monthly payments of $1576.1 over 12 years. The annual interest rate you are charged is 12%.             a. How much of your second monthly payment will go the repayment of1) principal. 2) interest (use an amortization schedule or table).             b. what will the remaining balance be on the loan after he makes the 40th payment (Show me the financial calculator’s inputs).
On January 1, 2019 Inglewood Corporation purchased a new warehouse facility for $5 million. Inglewood made...
On January 1, 2019 Inglewood Corporation purchased a new warehouse facility for $5 million. Inglewood made a 10 down payment and financed the remaining $4.5 million with a 30-year mortgage at 4% with payments due monthly. Compute the amount of Inglewood’s monthly payment Prepare the journal entry for the purchase of the warehouse Prepare an amortization table that covers the first four monthly payments made on the mortgage.
1. On January 1, 2019 IT Corporation purchased a new warehouse facility for $5 million. IT...
1. On January 1, 2019 IT Corporation purchased a new warehouse facility for $5 million. IT made a 10 down payment and financed the remaining $4.5 million with a 30-year mortgage at 4% with payments due monthly. a. Compute the amount of IT’s monthly payment b. Prepare the journal entry for the purchase of the warehouse c. Prepare an amortization table that covers the first four monthly payments made on the mortgage.
You have obtained a loan of $250,000 to purchase a home. What are the monthly payments...
You have obtained a loan of $250,000 to purchase a home. What are the monthly payments if the APR is 3.75% for 30 years (payments will be made monthly for the next 30 years)
Givens, Hong, and Partners obtained a $7200 term loan at 8.7% compounded annually for new boardroom...
Givens, Hong, and Partners obtained a $7200 term loan at 8.7% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest Principal Principal number Payment $ portion $ portion $ balance $ 0    --   -- -- 7200.00 1 2 3 4 5 6
A 30 year home loan of $135000 at 8.75% compounded monthly is obtained. a. Find the...
A 30 year home loan of $135000 at 8.75% compounded monthly is obtained. a. Find the montly payments rounded up to the next cent. $ b. State the total amount of interest paid on the loan assuming that it is kept for 30 years and all payments are the same. $
purchase of your first home for $600,000. You have just purchased the house and have put...
purchase of your first home for $600,000. You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount.  The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.875%.   You will make monthly payments for the life of the loan. Question 12 related to your purchase of your first home for $600,000. You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount.  The 15-year...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT