Find the monthly payment needed to amortize a typical $105,000 mortgage loan amortized over 30 years at an annual interest rate of 4.5% compounded monthly. (Round your answers to the nearest cent.) $ Find the total interest paid on the loan
Find the monthly payment needed to amortize a typical $105,000 mortgage loan amortized over 30 years at an annual interest rate of 4.5% compounded monthly. (Round your answers to the nearest cent.) $ Find the total interest paid on the loan
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
Related questions
Question
Find the monthly payment needed to amortize a typical $105,000 mortgage loan amortized over 30 years at an annual interest rate of 4.5% compounded monthly. (Round your answers to the nearest cent.)
$
Find the total interest paid on the loan.
$
Expert Solution
Step 1
We need to determine the monthly payment as well as the interest component.
Given,
Interest rate = 4.5% compounded monthly
= 4.5%/12 = 0.375% monthly
Period = 30 years
= 30*12 = 360 months
Loan = 105000
Step 2
This can be done in Excel
PMT(4.5%/12,30*12,-105000 )
=$532.02
Using formula,
=532.19
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning