Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.)

(a)

What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan?

$

(b)

Construct an amortization schedule for the first four months of Michael's mortgage.

Payment
Number Monthly
Payment
(in $) Monthly
Interest
(in $) Portion Used
to Reduce
Principal
(in $) Loan
Balance
(in $)

0 $

1 $ $ $ $

2 $ $ $ $

3 $ $ $ $

4 $ $ $ $

(c)

If the annual property taxes are $1,670 and the hazard insurance premium is $700 per year, what is the total monthly PITI of Michael's loan (in $)?

$

Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed
Monthly Payments
(Necessary to amortize a loan of $1,000)

Interest
Rate (%) 5
Years 10
Years 15
Years 20
Years 25
Years 30
Years 35
Years 40
Years

3.50 18.19 9.89 7.15 5.80 5.01 4.49 4.13 3.87

3.75 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03

4.00 18.42 10.12 7.40 6.06 5.28 4.77 4.43 4.18

4.25 18.53 10.24 7.52 6.19 5.42 4.92 4.58 4.34

4.50 18.64 10.36 7.65 6.33 5.56 5.07 4.73 4.50

4.75 18.76 10.48 7.78 6.46 5.70 5.22 4.89 4.66

5.00 18.87 10.61 7.91 6.60 5.85 5.37 5.05 4.82

5.25 18.99 10.73 8.04 6.74 5.99 5.52 5.21 4.99

5.50 19.10 10.85 8.17 6.88 6.14 5.68 5.37 5.16

5.75 19.22 10.98 8.30 7.02 6.29 5.84 5.54 5.33

6.00 19.33 11.10 8.44 7.16 6.44 6.00 5.70 5.50

6.25 19.45 11.23 8.57 7.31 6.60 6.16 5.87 5.68

6.50 19.57 11.35 8.71 7.46 6.75 6.32 6.04 5.85

6.75 19.68 11.48 8.85 7.6 6.91 6.49 6.21 6.03

7.00 19.80 11.61 8.99 7.75 7.07 6.65 6.39 6.21

7.25 19.92 11.74 9.13 7.90 7.23 6.82 6.56 6.40

7.50 20.04 11.87 9.27 8.06 7.39 6.99 6.74 6.58

7.75 20.16 12.00 9.41 8.21 7.55 7.16 6.92 6.77

8.00 20.28 12.13 9.56 8.36 7.72 7.34 7.10 6.95

8.25 20.40 12.27 9.70 8.52 7.88 7.51 7.28 7.14

8.50 20.52 12.40 9.85 8.68 8.05 7.69 7.47 7.33

8.75 20.64 12.53 9.99 8.84 8.22 7.87 7.65 7.52

9.00 20.76 12.67 10.14 9.00 8.39 8.05 7.84 7.71

9.25 20.88 12.80 10.29 9.16 8.56 8.23 8.03 7.91

9.50 21.00 12.94 10.44 9.32 8.74 8.41 8.22 8.10

9.75 21.12 13.08 10.59 9.49 8.91 8.59 8.41 8.30

10.00 21.25 13.22 10.75 9.65 9.09 8.78 8.60 8.49

10.25 21.37 13.35 10.90 9.82 9.26 8.96 8.79 8.69

10.50 21.49 13.49 11.05 9.98 9.44 9.15 8.98 8.89

10.75 21.62 13.63 11.21 10.15 9.62 9.33 9.18 9.08

11.00 21.74 13.78 11.37 10.32 9.80 9.52 9.37 9.28

11.25 21.87 13.92 11.52 10.49 9.98 9.71 9.56 9.48

11.50 21.99 14.06 11.68 10.66 10.16 9.90 9.76 9.68

11.75 22.12 14.20 11.84 10.84 10.35 10.09 9.96 9.88

12.00 22.24 14.35 12.00 11.01 10.53 10.29 10.16 10.08

12.25 22.37 14.49 12.16 11.19 10.72 10.48 10.35 10.29

12.50 22.50 14.64 12.33 11.36 10.9 10.67 10.55 10.49

12.75 22.63 14.78 12.49 11.54 11.09 10.87 10.75 10.69

13.00 22.75 14.93 12.65 11.72 11.28 11.06 10.95 10.90

Question

Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.)

(a)

What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan?

$

(b)

Construct an amortization schedule for the first four months of Michael's mortgage.

Payment Number	Monthly Payment (in $)	Monthly Interest (in $)	Portion Used to Reduce Principal (in $)	Loan Balance (in $)
0				$
1	$	$	$	$
2	$	$	$	$
3	$	$	$	$
4	$	$	$	$

(c)

If the annual property taxes are $1,670 and the hazard insurance premium is $700 per year, what is the total monthly PITI of Michael's loan (in $)?

$

Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed

Monthly Payments
(Necessary to amortize a loan of $1,000)

Interest Rate (%)	5 Years	10 Years	15 Years	20 Years	25 Years	30 Years	35 Years	40 Years
3.50	18.19	9.89	7.15	5.80	5.01	4.49	4.13	3.87
3.75	18.30	10.01	7.27	5.93	5.14	4.63	4.28	4.03
4.00	18.42	10.12	7.40	6.06	5.28	4.77	4.43	4.18
4.25	18.53	10.24	7.52	6.19	5.42	4.92	4.58	4.34
4.50	18.64	10.36	7.65	6.33	5.56	5.07	4.73	4.50
4.75	18.76	10.48	7.78	6.46	5.70	5.22	4.89	4.66
5.00	18.87	10.61	7.91	6.60	5.85	5.37	5.05	4.82
5.25	18.99	10.73	8.04	6.74	5.99	5.52	5.21	4.99
5.50	19.10	10.85	8.17	6.88	6.14	5.68	5.37	5.16
5.75	19.22	10.98	8.30	7.02	6.29	5.84	5.54	5.33
6.00	19.33	11.10	8.44	7.16	6.44	6.00	5.70	5.50
6.25	19.45	11.23	8.57	7.31	6.60	6.16	5.87	5.68
6.50	19.57	11.35	8.71	7.46	6.75	6.32	6.04	5.85
6.75	19.68	11.48	8.85	7.6	6.91	6.49	6.21	6.03
7.00	19.80	11.61	8.99	7.75	7.07	6.65	6.39	6.21
7.25	19.92	11.74	9.13	7.90	7.23	6.82	6.56	6.40
7.50	20.04	11.87	9.27	8.06	7.39	6.99	6.74	6.58
7.75	20.16	12.00	9.41	8.21	7.55	7.16	6.92	6.77
8.00	20.28	12.13	9.56	8.36	7.72	7.34	7.10	6.95
8.25	20.40	12.27	9.70	8.52	7.88	7.51	7.28	7.14
8.50	20.52	12.40	9.85	8.68	8.05	7.69	7.47	7.33
8.75	20.64	12.53	9.99	8.84	8.22	7.87	7.65	7.52
9.00	20.76	12.67	10.14	9.00	8.39	8.05	7.84	7.71
9.25	20.88	12.80	10.29	9.16	8.56	8.23	8.03	7.91
9.50	21.00	12.94	10.44	9.32	8.74	8.41	8.22	8.10
9.75	21.12	13.08	10.59	9.49	8.91	8.59	8.41	8.30
10.00	21.25	13.22	10.75	9.65	9.09	8.78	8.60	8.49
10.25	21.37	13.35	10.90	9.82	9.26	8.96	8.79	8.69
10.50	21.49	13.49	11.05	9.98	9.44	9.15	8.98	8.89
10.75	21.62	13.63	11.21	10.15	9.62	9.33	9.18	9.08
11.00	21.74	13.78	11.37	10.32	9.80	9.52	9.37	9.28
11.25	21.87	13.92	11.52	10.49	9.98	9.71	9.56	9.48
11.50	21.99	14.06	11.68	10.66	10.16	9.90	9.76	9.68
11.75	22.12	14.20	11.84	10.84	10.35	10.09	9.96	9.88
12.00	22.24	14.35	12.00	11.01	10.53	10.29	10.16	10.08
12.25	22.37	14.49	12.16	11.19	10.72	10.48	10.35	10.29
12.50	22.50	14.64	12.33	11.36	10.9	10.67	10.55	10.49
12.75	22.63	14.78	12.49	11.54	11.09	10.87	10.75	10.69
13.00	22.75	14.93	12.65	11.72	11.28	11.06	10.95	10.90

Accepted Answer

Information Provided:
Purchase price = $62,000
Down payment = 20%
Term = 30 year
Rate = 5%