A house sells for $309,500 and a 4% down payment is made. A mortgage is secured at 4% for 20 years. Compute an amortization schedule for the first 3 months. Round your answers to two decimal places, if necessary.The value of the mortgage is $297,120 and the monthly payment is $1800.55.Part: 0 / 30 of 3 Parts Complete Part 1 of 3 Payment number Interest Payment on Principal Balance of Loan 1$$$ Procedure for Computing an Amortization ScheduleStep 1 Find the interest for the first month. Use =IPrt, where =t112. Enter this value in a column labeled Interest.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 from the principal to get the balance of the loan. Enter this in a column labeled Balance of Loan.Step 4 Repeat the steps using the amount of the balance found in step 3 for the new principal.

Amortization Schedule: It is a table that contains details about the interest payment, principal…

Answered: The value of the mortgage is $297,120…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...

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Question

A house sells for

$309,500

and a

down payment is made. A mortgage is secured at

for

years. Compute an amortization schedule for the first

months. Round your answers to two decimal places, if necessary.

The value of the mortgage is

$297,120

and the monthly payment is

$1800.55

Part: 0 / 3

0 of 3 Parts Complete

Part 1 of 3

Payment number	Interest	Payment on Principal	Balance of Loan
1	$	$	$

Procedure for Computing an Amortization Schedule

Step 1	Find the interest for the first month. Use =IPrt , where =t112 . Enter this value in a column labeled Interest.
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 from the principal to get the balance of the loan. Enter this in a column labeled Balance of Loan.
Step 4	Repeat the steps using the amount of the balance found in step 3 for the new principal.

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