Question

Make an amortization table to show the first two payments for the mortgage.

Amount of mortgage = $407,579 Annual Interest rate = 5.00% Years in mortgage = 35 Monthly payment = $2057.00

Month 1

Monthly Payment = 2057.00

Interest = $___

Principal = $___

End-of-month principal = $___

(Round to the nearest cent as needed.)

Month 2

Monthly Payment = 2057.00

Interest = $___

Principal = $___

End-of-month principal = $___

?(Round to the nearest cent as? needed.)

Answer 1

Amount of Mortgage = $407,579
Monthly Payment = $2,057.00
Annual Interest Rate = 5.00%
Monthly Interest Rate = 0.4167%

Month 1:

Interest = 0.4167% * $407,579
Interest = $1,698.38

Principal repaid = $2,057.00 - $1,698.38
Principal repaid = $358.62

End of month principal = $407,579 - $358.62
End of month principal = $407,220.38

Month 2:

Interest = 0.4167% * $407,220.38
Interest = $1,696.89

Principal repaid = $2,057.00 - $1,696.89
Principal repaid = $360.11

End of month principal = $407,220.38 - $360.11
End of month principal = $406,860.27