Question

A 15-year, $150,000 mortgage has a rate of 6 percent.

a. What are the interest and principal portions in the first payment? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Interest:

Principal:

b. What are the interest and principal portions in the second payment? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Interest:

Principal:

Answer 1

	P =	Yearly Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(6%)*150000
		1 - (1 / (1 + 6%)^15))
	P =	9000
		0.582734939
	P =	$ 15444.41
	Beginning Balance	Interest	Principal	Ending Balance
1	$150,000.00	$9,000.00	$6,444.41	$143,555.59
2	$143,555.59	$8,613.34	$6,831.08	$136,724.51

First Payment

Interest: 9000

Principal: 6444.41

Second Payment:

Interest: 8613.34

Principal: 6831.04