Jaclyn and Henry secured a $ 225, 000 mortgage at 5% annual interest for 20 years. This results in a monthly payment of $ 1484.90 and the interest paid in month one is $ 937.50. Assume they only make the minimum payment each month. How much is the balance reduced in month one? What is the beginning balance for month two?

Jaclyn and Henry secured a $ 225, 000 mortgage at 5% annual interest for 20 years. This results in a monthly payment of $ 1484.90 and the interest paid in month one is $ 937.50. Assume they only make the minimum payment each month. How much is the balance reduced in month one? What is the beginning balance for month two?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

See similar textbooks

Similar questions

Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against their current home. Repayment amount is $6,900 at the end of every six months. a. How many payments are required to repay the loan? Number of payments b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent. Payment Amount Number Paid ($) 0 1 2 : : N - 1 N Total 6,900.00 6,900.00 : : = 6,900.00 Interest Paid ($) : : : Principal Repaid ($) : : Outstanding Balance ($) 62,000.00 : : 0.00
Jada and Izaak borrowed $40,000 at 5.53% compounded quarterly as a second mortgage loan against their current home. Repayment amount is $750 at the end of every month. a. How many payments are required to repay the loan? Number of payments 61 b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent. Payment Amount Number Paid ($) 0 1 2 N - 1 N Total 750.00 750.00 : : 750.00 2,175.72 X 47,175.72 X Interest Paid ($) 183.49 192.61 10.58 6.96 : : : X 6,432.68 X X X Principal Repaid ($) 566.51 557.39 : 739.42 1,425.72 X 40,000 X X X Outstanding Balance ($) 40,000.00 39,433.49 38,876.10 : X 1,425.72 X 0.00
Jada and Izaak borrowed $40,000 at 5.53% compounded quarterly as a second mortgage loan against their current home. Repayment amount is $750 at the end of every month. a. How many payments are required to repay the loan? Number of payments b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent. Payment Amount Number Paid ($) 0 1 2 : N - 1 N Total 750.00 750.00 : 750.00 Interest Paid ($) : : Principal Repaid ($) : : Outstanding Balance ($) 40,000.00 ⠀ : 0.00
Melynda and Andrés borrowed $60,000 at 7.25% compounded annually as a second mortgage loan against their current home. Repayment amount is $5,900 at the end of every six months. a. How many payments are required to repay the loan? Number of payments b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent.
Abigail received a 15 year loan of $280,000 to purchase a house. The interest rate on the loan was 5.80% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 2? c. By how much will the amortization period shorten if Abigail makes an extra payment of $30,000 at the end of year 2?
The Clarks are arranging a $90,000 mortgage loan from their bank. The mortgage is to be amortized by making monthly payments over 20 years. The Interest on the loan will be 7.9% compounded semlannually. a. What is the size of the monthly payments? b. Vhat Is the principal repaid by the 20th payment? c. What is the outstanding balance after two years (I.e. 24 months)? d. How much interest will the Clarks pay in the first two years?
Suzanne and Garth have arranged to borrow a $425,000 mortgage loan at 2.75% per annum, compounded semi-annually (j2 2.75%). This loan will be repaid with quarterly payments rounded up to the next higher $10 over an amortization period of 20 years. (a) Calculate the principal and interest portions of the 1st and the 40th payment. (b) Explain what is happening to the principal and interest over time.
Sam takes out a loan for $3,685.50. The term of the loan is 7 years, and she will make bi-weekly payments. The interest rate on the loan is 3.475% compounded monthly. a) What is the effective interest rate per payment period? b) If Sam is going to repay the loan with level payments, what is the monthly payment amount? c) Fill in the first 3 rows of the loan amortization table. d) What would the nominal interest rate (compounded monthly) have to be if the bi-weekly (level) payment amounts were $24.69?
Jason received a 30 year loan of $290,000 to purchase a house. The interest rate on the loan was 2.80% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3?
Dandil owes two debt payments – a payment of $5323 that was due today and a payment of $1655 due in 14 months. If Greg makes a payment now of $1000 and another payment in 6 months, what would this payment be if money is worth 5.30% p.a. simple interest? Assume a focal date of 6 months.
Tiffany received a loan of $8,600 at 4.75% compounded monthly. She settled the loan by making periodic payments at the end of every three months for 5 years, with the first payment made 3 years and 3 months from now. What was the size of the periodic payments?
Alexandra took out a mortgage of $791,000 for a house and just made the 79th end of month payment. Interest on the loan was 4.43% compounded monthly and the mortgage has a period of 19 years. Round ALL answers to two decimal places if necessary. 1) What are her monthly payments? P/Y = I/Y = % BAL= $ positive value) C/Y = PV = $ PMT= $ N = FV = $ 2) What is her current outstanding balance after the 79th payment? (enter a