Question

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?

Answer #1

a)

**Principal in first payment is $1,082.16**

b)

**Interest in 50th payment is $2,200.41**

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 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?

You've just taken on a 20-year, $150,000 mortgage with a
quoted interest rate of 6 percent calling for payments
semiannually. How much of your first year's loan payments (the
initial two payments, with the first coming after 6 months have
passed, and the second one coming at the end of the first year)
goes toward paying interest, rather than principal?

You took out a fully amortizing 30 year mortgage with the
initial balance of $681,016. This mortgage has a fixed interest
rate at 3%. After you completed two full years of monthly payments,
how much have you paid toward principal? Round your answer to the
nearest cent (e.g. if your answer is $7000.9873, enter
7000.99).

You took out a fully amortizing 30 year mortgage with the
initial balance of $125,737. This mortgage has a fixed interest
rate at 1%. After you completed two full years of monthly payments,
how much have you paid toward principal? Round your answer to the
nearest cent (e.g. if your answer is $7000.9873, enter
7000.99).

You have just taken out an amortized loan for $404,000. Assume
that the loan will be paid in 24 equal monthly installments of
$18,345.62 and that the first payment will be due 1 month from
today. How much of your third monthly payment will go toward the
repayment of principal? Fill in the worksheet below.
Month
Interest Owing
at End of Month ($)
Principal Repayment ($)
Principal Owing
at End of Month ($)
1
2
3

A borrower takes out a 20-year mortgage for $500,000 with an
interest rate of 6%. The loan requires monthly payments and has a
3% fee if the loan is repaid within 10 years. What is the effective
interest rate on the loan if the borrower repays the loan after 72
payments?

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.

You took out a fully amortizing 30 year fixed rate $200,000
mortgage with 5% contract interest rate. After you completed two
full years of payments, how much have you paid toward
principal?
please explain,

(Components of an annuity payment) You take out a 25-year
mortgage for $280 comma 000 to buy a new house. What will your
monthly payments be if the interest rate on your mortgage is 7
percent? Use a spreadsheet to calculate your answer. Now,
calculate the portion of the 108th monthly payment that goes toward
interest and principal. Use five decimal places for the monthly
interest rate in your calculations?

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