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9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 10 (d) Balance of principal Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 2.0% 5 17.52776 2.5% $ 17.74736 3.0% $17.96869 3.5% $ 18.19174 4.0% $ 18.41652 4.5% $18.64302 5.0% $18.87123 5.5% $ 19.10116 6.0% $ 19.33280 6.5% $19.56615 7.0% $ 19.80120 7.5% $ 20.03795 8.0% $ 20.27639 8.5% $ 20.51653 9.0% $ 20.75836 $9.20135 $ 9.42699 $ 9.65607 $ 9.88859 $10.12451 $10.36384 $10.60655 $10.85263 $11.10205 $11.35480 $11.61085 $11.87018 $12.13276 $12.39857 $12.66758 $ 7.14883 $ 7.39688 $ 7.64993 $7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $9.84740 $10.14267 (a) Total payment: (use the table above or the payment formula) 25 $5.05883 $4.23854 $5.29903 $4.48617 $4.74211 $5.00624 $5.27837 $ 5.54598 $ 5.79960 $ 6.05980 $6.32649 $ 6.59956 $6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 30 (c) Principal payment $5.55832 $5.84590 55.36822 $6.14087 $5.67789 $6.44301 $5.99551 $6.75207 $6.32068 $7.06779 56.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 58.04623 $3.69619 $3.02826 $3.95121 $3.29778 $4.21604 $3.57984 $4.49045 $3.87391 $4.77415 $4.17938 40 $5.06685 $4.49563 $4.82197 $5.15770 $5.50214 $5.85457 56.21431 $6.58071 $6.95312 $7.33094 $7.71361 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.)

9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 10 (d) Balance of principal Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 2.0% 5 17.52776 2.5% $ 17.74736 3.0% $17.96869 3.5% $ 18.19174 4.0% $ 18.41652 4.5% $18.64302 5.0% $18.87123 5.5% $ 19.10116 6.0% $ 19.33280 6.5% $19.56615 7.0% $ 19.80120 7.5% $ 20.03795 8.0% $ 20.27639 8.5% $ 20.51653 9.0% $ 20.75836 $9.20135 $ 9.42699 $ 9.65607 $ 9.88859 $10.12451 $10.36384 $10.60655 $10.85263 $11.10205 $11.35480 $11.61085 $11.87018 $12.13276 $12.39857 $12.66758 $ 7.14883 $ 7.39688 $ 7.64993 $7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $9.84740 $10.14267 (a) Total payment: (use the table above or the payment formula) 25 $5.05883 $4.23854 $5.29903 $4.48617 $4.74211 $5.00624 $5.27837 $ 5.54598 $ 5.79960 $ 6.05980 $6.32649 $ 6.59956 $6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 30 (c) Principal payment $5.55832 $5.84590 55.36822 $6.14087 $5.67789 $6.44301 $5.99551 $6.75207 $6.32068 $7.06779 56.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 58.04623 $3.69619 $3.02826 $3.95121 $3.29778 $4.21604 $3.57984 $4.49045 $3.87391 $4.77415 $4.17938 40 $5.06685 $4.49563 $4.82197 $5.15770 $5.50214 $5.85457 56.21431 $6.58071 $6.95312 $7.33094 $7.71361 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 12P
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9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 5 (d) Balance of principal 10 2.0% $17.52776 $9.20135 2.5% $ 17.74736 $9.42699 3.0% $17.96869 $ 9.65607 3.5% $ 18.19174 $ 9.88859 4.0% $18.41652 $10.12451 4.5% $18.64302 $10.36384 5.0% $18.87123 $10.60655 5.5% $ 19.10116 $10.85263 6.0% $19.33280 $11.10205 6.5% $19.56615 $11.35480 7.0% $19.80120 $11.61085 7.5% $ 20.03795 $11.87018 8.0% $ 20.27639 $12.13276 8.5% $ 20.51653 $12.39857 9.0% $ 20.75836 $12.66758 $10.14267 (a) Total payment: (use the table above or the payment formula) Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 $7.14883 $ 7.39688 $ 7.64993 $ 7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $ 9.84740 $ 5.05883 $5.29903 $ 5.54598 $ 5.79960 $ 6.05980 $ 6.32649 $ 6.59956 $ 6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 25 $4.23854 $4.48617 30 (c) Principal payment $4.74211 $4.21604 $4.49045 $5.00624 $5.27837 $5.55832 $4.77415 $5.06685 $5.84590 $5.36822 $6.14087 $5.67789 $5.99551 $6.44301 $6.75207 $7.06779 $6.32068 $6.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 $8.04623 $3.69619 $3.02826 $3.95121 $3.29778 $3.57984 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.) 40 $3.87391 $4.17938 $4,49563 $4.82197 $5.15770 $5.50214 $5.85457 $6.21431 $6.58071 $6.95312 $7.33094 $7.71361 10
Transcribed Image Text:9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 5 (d) Balance of principal 10 2.0% $17.52776 $9.20135 2.5% $ 17.74736 $9.42699 3.0% $17.96869 $ 9.65607 3.5% $ 18.19174 $ 9.88859 4.0% $18.41652 $10.12451 4.5% $18.64302 $10.36384 5.0% $18.87123 $10.60655 5.5% $ 19.10116 $10.85263 6.0% $19.33280 $11.10205 6.5% $19.56615 $11.35480 7.0% $19.80120 $11.61085 7.5% $ 20.03795 $11.87018 8.0% $ 20.27639 $12.13276 8.5% $ 20.51653 $12.39857 9.0% $ 20.75836 $12.66758 $10.14267 (a) Total payment: (use the table above or the payment formula) Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 $7.14883 $ 7.39688 $ 7.64993 $ 7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $ 9.84740 $ 5.05883 $5.29903 $ 5.54598 $ 5.79960 $ 6.05980 $ 6.32649 $ 6.59956 $ 6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $ 8.99726 25 $4.23854 $4.48617 30 (c) Principal payment $4.74211 $4.21604 $4.49045 $5.00624 $5.27837 $5.55832 $4.77415 $5.06685 $5.84590 $5.36822 $6.14087 $5.67789 $5.99551 $6.44301 $6.75207 $7.06779 $6.32068 $6.65302 $7.38991 $6.99215 $7.71816 $7.33765 $8.05227 $7.68913 $8.39196 $8.04623 $3.69619 $3.02826 $3.95121 $3.29778 $3.57984 (e) If the borrower pays an additional $10,000 in principal in the first month, how much interest will he/she/they pay in the second month? (This is on top of the scheduled payment you found in part c.) (Hint!! This will change the balance of principal.) 40 $3.87391 $4.17938 $4,49563 $4.82197 $5.15770 $5.50214 $5.85457 $6.21431 $6.58071 $6.95312 $7.33094 $7.71361 10
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