Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $
Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%.
a) What is your monthly payment?
N: months
I %:
P.V: $
PMT: $
F.V: 0
P/Y: 12
C/Y: 12
b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt
Interest: I=$
c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest
Amount Applied to Principal: $
d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal
Outstanding Balance after first payment: $
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