Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at 638% for thirty years. (Round your answers to the nearest cent.)(a) Find her monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan.PaymentNumberPrincipalPortionInterestPortionTotalPaymentBalance0 $ 1$ $ $ $ 2$ $ $ $ (d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?$ per month

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Answered: (a) Find her monthly payment. $ (b)…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 8P

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Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at

for thirty years. (Round your answers to the nearest cent.)

(a) Find her monthly payment.
$

(b) Find the total interest.
$

(c) Prepare an amortization schedule for the first two months of the loan.

Payment Number	Principal Portion	Interest Portion	Total Payment	Balance
0				$
1	$	$	$	$
2	$	$	$	$

(d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?
$ per month

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