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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Using Table 14-1 as needed, calculate the required information for the following mortgages.

TABLE 14-1 Monthly Payments to Amortize Principal and Interest per $1,000 Financed
Monthly Payments(Necessary to amortize a loan of $1,000) 40Years
Interest Rate (%) 5Years 10Years 15Years 20Years 25Years 30Years 35Years
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 18.88 10.61 7.91 6.60 5.85 5.37 5.05 4.83
5.25 18.99 10.73 8.04 6.74 6.00 5.53 5.21 4.99
5.50 19.11 10.86 8.18 6.88 6.15 5.68 5.38 5.16
5.75 19.22 10.98 8.31 7.03 6.30 5.84 5.54 5.33
6.00 19.34 11.11 8.44 7.17 6.45 6.00 5.71 5.51
6.25 19.45 11.23 8.58 7.31 6.60 6.16 5.88 5.68
6.50 19.57 11.36 8.72 7.46 6.76 6.33 6.05 5.86
6.75 19.69 11.49 8.85 7.61 6.91 6.49 6.22 6.04
7.00 19.81 11.62 8.99 7.76 7.07 6.66 6.39 6.22
7.25 19.92 11.75 9.13 7.91 7.23 6.83 6.57 6.40
7.50 20.04 11.88 9.28 8.06 7.39 7.00 6.75 6.59
7.75 20.16 12.01 9.42 8.21 7.56 7.17 6.93 6.77
8.00 20.28 12.14 9.56 8.37 7.72 7.34 7.11 6.96
8.25 20.40 12.27 9.71 8.53 7.89 7.52 7.29 7.15
8.50 20.52 12.40 9.85 8.68 8.06 7.69 7.47 7.34
8.75 20.64 12.54 10.00 8.84 8.23 7.87 7.66 7.53
9.00 20.76 12.67 10.15 9.00 8.40 8.05 7.84 7.72
9.25 20.88 12.81 10.30 9.16 8.57 8.23 8.03 7.91
9.50 21.01 12.94 10.45 9.33 8.74 8.41 8.22 8.11
9.75 21.13 13.08 10.60 9.49 8.92 8.60 8.41 8.30
10.00 21.25 13.22 10.75 9.66 9.09 8.78 8.60 8.50
10.25 21.38 13.36 10.90 9.82 9.27 8.97 8.79 8.69
10.50 21.50 13.50 11.06 9.99 9.45 9.15 8.99 8.89
10.75 21.62 13.64 11.21 10.16 9.63 9.34 9.18 9.09
11.00 21.75 13.78 11.37 10.33 9.81 9.53 9.37 9.29
11.25 21.87 13.92 11.53 10.50 9.99 9.72 9.57 9.49
11.50 22.00 14.06 11.69 10.67 10.17 9.91 9.77 9.69
11.75 22.12 14.21 11.85 10.84 10.35 10.10 9.96 9.89
12.00 22.25 14.35 12.01 11.02 10.54 10.29 10.16 10.09
12.25 22.38 14.50 12.17 11.19 10.72 10.48 10.36 10.29
12.50 22.50 14.64 12.33 11.37 10.91 10.68 10.56 10.49
12.75 22.63 14.79 12.49 11.54 11.10 10.87 10.76 10.70
13.00 22.76 14.94 12.66 11.72 11.28 11.07 10.96 10.90

Term Number

Amount Interest of Loan of $1,000s Table Monthly
Financed Rate (years) Financed Factor Payment Total Interest
$164,900 4.50% 25

To determine

To calculate: The number of 1000’s financed, to estimate the table factor from the table, to calculate the monthly payment and total interest.

Amount Financed

Interest Rate

Term of loan (years)

Number of $1,000s Financed

Total Factor

Monthly Payment

Total Interest

$164,900

4.50%

25

______

_______

_______

______

Explanation

Given Information:

The provided amount of financed is $164,900, rate of interest is 4.50% and the time period is 25 years.

Formula used:

The following step are used to find the monthly mortgage payment by using an amortization table:

Step-1 Find the number of $1,000s financed.

Number of $1,000s financed=Amount finanaced1,000

Step-2 Using Table 14-1, locate the table factor, monthly payment per $1,000s financed, at the intersection of the number-of –year column and thee interest rate row.

Step-3 Calculate the monthly payment.

Monthlypayment=TableFactor×No Of 1000's inthePrinciple

The total interest of the loan.

TotalInterest=(MonthlyPayment×No.Of Payments)AmountFinanced

Calculation:

The amount of monthly payment is $164,900

Now calculate the number of $1,000s amount of financed $164,900

Substitute, $164,900 for Amount finanaced in above relation,

Number of $1,000s financed=$164,9001,000=164.90

The number of $1,000s is 164

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