Question

John and Peggy recently bought a house. They financed the house with a $125,000, 30-year mortgage...

  1. John and Peggy recently bought a house. They financed the house with a $125,000, 30-year mortgage with a nominal interest rate of 7 percent. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first three years will go towards repayment of principal?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

- Loan Amount = $125,000

Monthly Interest rate = 7%/12 = 0.58333%

No of monthly payments = 30 years*12 = 360

Calculating the total dollar amount of mortgage payment during the first 3 years(or first 36 payments) using the Excel "CUMPRINC" function:-

So, the total dollar amount of mortgage payment is $4091.30

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating       

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
John recently bought a house, and he financed it with a $250,000, 30-year mortgage with an...
John recently bought a house, and he financed it with a $250,000, 30-year mortgage with an annual interest rate of 7 percent. The mortgage payments are made at the end of each year. What total dollar amount of the mortgage payments during the first three years will go towards paying interest?
22. The Howe family recently bought a house. The house has a 15-year, $228,153.00 mortgage with...
22. The Howe family recently bought a house. The house has a 15-year, $228,153.00 mortgage with monthly payments and a nominal interest rate of 6%. What is the total dollar amount of principal the family will pay during the first 5 years of their mortgage? (Assume all payments are made at the end of the month)
Please show the below problem in Excel: John and Peggy would like to buy a house....
Please show the below problem in Excel: John and Peggy would like to buy a house. They have looked at their budget and determined that they can afford a maximum monthly mortgage payment of $1,100. Interest rates on 30-year, fixed-rate mortgages currently have a nominal annual interest rate of 7 percent with monthly compounding (payments due at the end of each month). Given these loan terms, what is the maximum amount John and Peggy borrow today to purchase a house...
Your family purchased a house three years ago. When you bought the house you financed it...
Your family purchased a house three years ago. When you bought the house you financed it with a $185,000 mortgage with an 8.2 percent nominal interest rate, with monthly payments. The mortgage was for 15 yearsWhat is the remaining balance on your mortgage today? What the PV of an ordinary annuity with 10 payments of \$66,450 If the appropriate Interest rate is 74 percent?
Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? (Ignore taxes...
Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.) a) The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years. b) Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant. c) Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will...
. A couple bought a house for $200,000 with 5% down and a 30 year mortgage...
. A couple bought a house for $200,000 with 5% down and a 30 year mortgage with an interest rate of 6% a year. What were the monthly payments? 5 points How much interest will be paid on the loan over the first 5 years of the loan? 5 points How much interest will be paid on the loan over the last 5 years of the loan? 5 points Why the difference in the two amounts? 5 points The house...
You take out standard 30-year mortgage with fixed monthly payments to purchase your house. The mortgage...
You take out standard 30-year mortgage with fixed monthly payments to purchase your house. The mortgage is for $250,000 with a nominal annual rate of 4.6% (Monthly compounding). Each month, you send in a check for $1,403.81, which is above the required payment, where the excess payment directly reduces the outstanding balance each month. What portion of your payments in months 25-36 go towards interest?
Assume you’ve recently purchased a home for $129,000 and you will be making monthly payments on...
Assume you’ve recently purchased a home for $129,000 and you will be making monthly payments on the mortgage. If the mortgage is for 30 years at an interest rate of 5%, what will be the monthly payment? For the first monthly payment, how much will go towards interest payment and how much will go towards repayment of the principal? Show your work.
Victoria and David have a 30-year, $75,000 mortgage with an 8% nominal annual interest rate. All...
Victoria and David have a 30-year, $75,000 mortgage with an 8% nominal annual interest rate. All payments are due at the end of the month. What percentage of their monthly payments the first year will go towards interest payments? 7.76% 9.49% 82.17% 90.51% 91.31%
Mr. and Mrs. Spirit purchased a $35,000 house 20 years ago. They took a 30-year mortgage...
Mr. and Mrs. Spirit purchased a $35,000 house 20 years ago. They took a 30-year mortgage for $30,000 at a 3% annual interest rate. Their bank, the First Amityville National Bank, has recently offered the Spirits two alternatives by which they could prepay their mortgage. The Spirits have just made their 20th annual payment. [A] Under the first alternative, the Spirits could prepay their mortgage at a 30% discount from the current principal outstanding. If current 10-year mortgage rates are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT