Concept explainers
In Exercises 1-10, use
to determine the regular payment amount, rounded to the nearest dollar.
The cost of a home is financed with a $160,000 30-year fixed-rate mortgage at 4.2%
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. Round entries to the nearest cent.
Payment Number | Interest | Principal | Loan Balance |
1 | |||
2 | |||
|
Spend no more than 28% of your gross monthly income for your mortgage payment.
Spend more than 36% of your gross monthly income for your mortgage debt.
Round all computations to the nearest dollar.
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