Use PMTto determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 40-year fixed-rate mortgage at 3%a. Find the monthly payments and the total interest for the loan.b. Prepare a loan amortization schedule for the first three months of the mortgage.a. The monthly payment is $Do not round until the final answer. Then round to the nearest cent as needed.)The total interest for the loan is s(Use the answer fom part a to find this answer. Round to the nearest cent as needed.)b. Fill out the loan amortization schedule for the first three months of the mortgage below.PrincipalLoan BalancePayment NumberInterest

Question
Asked May 15, 2019
250 views

on B (Use the answer from part a to find these answers. Round to the nearest cent as​ needed.)

 
 
Use PMT
to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 40-year fixed-rate mortgage at 3%
a. Find the monthly payments and the total interest for the loan.
b. Prepare a loan amortization schedule for the first three months of the mortgage.
a. The monthly payment is $
Do not round until the final answer. Then round to the nearest cent as needed.)
The total interest for the loan is s
(Use the answer fom part a to find this answer. Round to the nearest cent as needed.)
b. Fill out the loan amortization schedule for the first three months of the mortgage below.
Principal
Loan Balance
Payment Number
Interest
help_outline

Image Transcriptionclose

Use PMT to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 40-year fixed-rate mortgage at 3% a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $ Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for the loan is s (Use the answer fom part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Principal Loan Balance Payment Number Interest

fullscreen
check_circle

Expert Answer

Step 1

P = $ 150,000

r = 3% = 0.03

n = 12 (months in a year)

t = 40 years

Step 2

(a)

Please see the white board.

The monthly payment = PMT = $ 536.98

fullscreen
Step 3

Total interest payment = Total payment - Principal = PMT x n x t - P = 53...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: I need prepare the income statement in accordance with genrally accepted accounting principles.    R...

A: The following the income statement in accordance with GAAP:

question_answer

Q: First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0506. The ...

A: Calculation of Beta:

question_answer

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball...

A: Calculation of Annual Depreciation Tax Shield:

question_answer

Q: NOTE: You already replied on this question with the answers as indicated below. Unfortunately, all a...

A: Part (a)All financials below are in $ mn.The net cash flow at time 0 if the old equipment is replace...

question_answer

Q: Stock in CDB Industries has a beta of 1.13. The market risk premium is 7.3 percent, and T-bills are ...

A: We can calculate cost of equity capital by two method. First is using the capital asset pricing mode...

question_answer

Q: Participation #3:   Discuss mortgage loans in terms of the time value of money and loan amortization...

A: A mortgage loan originates when an asset is purchased with loan. The mortgage loan is repaid in inte...

question_answer

Q: A $2,000 furniture can be financed by paying $50 per month for 4 years. What is the annual nominal c...

A: Nominal Interest Rate:It is the rate of interest which calculates before taking inflation. It exclud...

question_answer

Q: NoGrowth Corporation currently pays a dividend of $2.00 per​ year, and it will continue to pay this ...

A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is earning...

question_answer

Q: A bank's loan rate for a machine is 9%. Determine the effective rate on the basis of the compounding...

A: The effective interest rate or the effective annual rate (EAR) is the actual rate paid or earned on ...