Question

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.

Homework Answers

Answer #1
P = Regular Payments
PV = Loan Amount
r = rate of interest
n = no of periods
P = r (PV)
1 - (1 + r )-n
P = (5%/12)*129000
1 - (1 / (1 + 5%/12)^360))
P = 537.5
0.776173404
P = 692.50
Beginning Balance Interest Principal Ending Balance
1 $129,000.00 $537.50 $155.00 $128,845.00
For the first monthly payment, interest payment = $ 537.50
repayment of the principal = $ 155
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume you have recently purchased an investment property for $89,700 and you will be making monthly...
Assume you have recently purchased an investment property for $89,700 and you will be making monthly payments on the mortgage. If the mortgage is for 15 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 loan?
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly...
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly payments for 10 years, 120 payments in all, with the first payment in one month. The bank charges you an interest rate of 9.6% (APR with monthly compounding). a. How much of your first payment is interest, and how much is repayment of principal? b. What is the loan balance immediately after the 10th payment? (Calculate the loan balance using the annuity formula.) c....
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).
You have just purchased a home and taken out a $275,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $275,000 mortgage. The mortgage has a 25-year term with monthly payments and an APR of 3% compounding monthly. How much of your 288th payment will be interest and how much will go toward reducing your principal?
John and Peggy recently bought a house. They financed the house with a $125,000, 30-year mortgage...
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?
you just took out a $500,000, 20-year mortgage from CIBC. ASSume your effective monthly rate of...
you just took out a $500,000, 20-year mortgage from CIBC. ASSume your effective monthly rate of interest is 0.5% and your monthly payments are $3582.16. (a) How much of your first monthly payment goes toward principal repayment? (b) how much of your 50th monthly payment goes toward interest?
Clark and Lana take a 30-year home mortgage of $129,000 at 7.8%, compounded monthly. They make...
Clark and Lana take a 30-year home mortgage of $129,000 at 7.8%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1400 per month. (a) Find their regular monthly payment. (Round your answer to the nearest cent.) the answer is $ 928.63 (b) Find the unpaid balance when they begin paying the $1400. (Round your answer to the nearest cent.) the answer is $ 122,411.73 (c) How many payments of $1400 will it take...
You have just purchased a home and taken out a $450,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $450,000 mortgage. The mortgage has a 30 year term with monthly payments and an APR of 6.88%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
5. You recently purchased a piece of jewelry on your credit card bill for $1,800. The...
5. You recently purchased a piece of jewelry on your credit card bill for $1,800. The interest rate on the card is 22% per year. If you make the minimum monthly payments, you will pay off the balance in 36 months (3 years) assuming no further charges are made on the card. a. What is your monthly payment? b. How much will you have paid in interest when the balance is paid in full? c. How much of the first...
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR 9with semi-annual compounding) of 7.04%. A. How much will you pay in interest, and how much will you pay in principal, during the first year ? B. How much will you pay in interest, and how much you in pay in principal, during the the Twentieth year (i.e. between 19 and 20 years from now) ?