10.4Allocation of the Monthly Payment (pp. 584-387)Compute (a) the allocation of the monthly payment toward principal and interestand (b) the new principal.Rowena Tinley obtains a 30-year, $90,000 mortgage from State Bank. The interest rate is7.5%, and her monthly payment is $629.10. For the first payment, what is the amount of(a) interest, (b) payment to principal, and (c) new principal?Step 1: Find the interest.Principal x Rate x Time$90,000.00 x 7.5% x12= $562.50 interestStep 2: Find the payment to principal.Monthly PaymentInterest$629.10$562.50 - $66.60 payment to principalStep 3: Find the new principal.Previous Balance - Payment to Principal$90,000.00$66.60= $89,933.40 new principalReview ExercisesFind the (a) amount for interest, (b) amount for principal, and (c) new principal.Interest First Monthly Amount forPaymentAmount forMortgageAmountNewPrincipalb. $PrincipalC.SRateInterest26.$ 60,0007.0%$399.00a. S27.130,0005.5738.40a.b.28.145,5006.0873.00а.b.29.159,9005.0858.66a.b.C.

Find the (a) amount for interest, (b) amount for principal, and (c) new principal. Mortgage Amount Interest First Monthly Amount for Payment Amount for New Rate Interest Principal Principal 26. $ 60,000 7.0% $399.00 a. S b. $ C.S 27. 130,000 5.5 738.40 b. a. 28. 145,500 6.0 873.00 a. b. C. 29. 159,900 5.0 858.66 a. b. C.

Find the (a) amount for interest, (b) amount for principal, and (c) new principal. Mortgage Amount Interest First Monthly Amount for Payment Amount for New Rate Interest Principal Principal 26. $ 60,000 7.0% $399.00 a. S b. $ C.S 27. 130,000 5.5 738.40 b. a. 28. 145,500 6.0 873.00 a. b. C. 29. 159,900 5.0 858.66 a. b. C.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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