A grocery store sells for $544,500 and a 5% down payment is made. A 15 -year mortgage at 7% is obtained. Compute an amortization schedule for the first 3 months. Round your answers to two decimal places, if necessary. The value of the mortgage is $517,275 and the monthly payment is $4650.30
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A grocery store sells for
and a
down payment is made. A
-year mortgage at
is obtained. Compute an amortization schedule for the first
months. Round your answers to two decimal places, if necessary.
The value of the mortgage is
and the monthly payment is
.
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|
| Step
1
|
Find the interest for the first month. Use
=IPrt
=t112
|
| Step
2
|
Subtract the interest from the monthly payment to get the amount paid on the principal. Enter this amount in a column labeled Payment on Principal. |
| Step
3
|
Subtract the amount of the payment on principal found in step
2
|
| Step
4
|
Repeat the steps using the amount of the balance found in step
3
|
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