Question

You plan to purchase a $250,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.00 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage? Answer is not complete. Complete this question by entering your answers in the tabs below. Req B Req B Total Req A Amortization Interest Schedule Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Month Amortization Schedule for the 15-Year Mortgage Principal Interest Cumulative Cumulative Principal Interest 250,000.00 1,041.67 % 935.32% Ending Balance 180 < Req A Req B Total Interest >

I also need to know total interest paid and monthly payment. Please help.

Answer 1

Purchase House = $250,000

Less :- Down Payment (20% of $250000) -$50,000

-----------------------------------------------------------------------------------

Balance Amount (Loan Amount ) =$200000

($250000 - $50000)   

Mortgage Rate = 5%, Mortgage Period = 15 Years

a) We need to adjust r (Interest Rate) = 5% / 12 = 0.00417

and n ( Number of Periods) = 15 * 12 = 180

Here,

A = Monthly Payment

P = Principle amount of loan

  r = Interest Rate

n = Number of periods

Calculate monthly payment using the following formula :

A= P x r 1- (1+r)-n

A = 200000 0.00417 1-(1 + 0.00417)-180

A= $1581.59

b) Compute total Interest paid on the loan :-

Total Amount Paid = A * no of payment

= $1581.59 * 180

  = $284685.71

Compound Interest = Total amount Paid - Principle

=$284685.71 - $200000

Total Interest =$84685.71

Please refer below detail amortise schedule :-

Month Loan Amount 200000 =250000-50000 r(Int. rate per month) 0.417% =0.05/12 n (number of payment) 180 =15*12 A (Monthly Payment) 1581.59 =PMT(0.417%,180,-200000,0,0) Amortization Schedule for the 15 year Mortgage Principle Interest Cumulative Principal Cumulative Interest Ending Balance Closing balance (Loan opening balance =Opening Principle* Cumulative Principal Cumulative Interest Amount - Cumulative Mothly Interest rate Payment Principle) 200000 833.33 748.25 833.33 199251.75 1499.63 1663.55 198500.37 198500.37 2254.13 2490.63 197745.87 197745.87 3011.77 3314.57 196988.23 820.78 3772.58 4135.36 196227.42 196227.42 817.61 4536.55 195463.45 195463.45 814.43 5303.71 194696.29 6074.06 193925.94 193925.94 808.02 6847.62 7386.66 193152.38 804.80 7624.41 192375.59 192375.59 801.56 8404.43 8993.03 191595.57 798.31 9187.70 190812.30 190812.30 795.05 9974.24 10586.40 190025.76 190025.76 791.77 10764.05 11378.17 189235.95 189235.95 788.48 11557.16 12166.65 188442.84 188442.84 785.18 12353.56 12951.83 187646.44 187646.44 781.86 13153.29 186846.71 186846.71 13956.35 14512.22 186043.65 186043.65 14762.76 15287.40 185237.24 185237.24 15572.52 16059.22 184427.48 184427.48 16385.66 16827.67 183614.34 183614.34 17592.73 182797.81 761.66 18022.12 18354.39 181977.88 181977.88 758.24 18845.46 19112.63 181154.54 181154.54 754.81 19672.24 19867.44 180327.76 180327.76 751.37 20502.46 20618.81 179497.54 179497.54 747.91 21336.14 21366.71 178663.86 178663.86 22173.30 22111.15 177826.70 740.94 22852.09 176986.06 176986.06 23858.09 23589.53 176141.91 24705.75 24323.46 175294.25 175294.25 730.39 25053.85 174443.06 174443.06 26411.68 25780.70 173588.32 173588.32 723.28 27269.99 26503.98 172730.01 719.71 28131.87 27223.69 171868.13 171868.13 28997.34 27939.81 171002.66 712.51 29866.41 28652.32 170133.59 30739.11 29361.21 169260.89 169260.89 705.25 31615.44 30066.46 168384.56 168384.56 32495.43 167504.57 167504.57 697.94 31466.00 166620.92 166620.92 694.25 34266.41 32160.25 165733.59 165733.59 690.56 35157.44 32850.81 164842.56 164842.56 686.84 36052.19 33537.65 163947.81 683.12 36950.66 34220.77 163049.34 163049.34 679.37 37852.87 162147.13 162147.13 38758.85 35575.75 161241.15 161241.15 671.84 39668.60 36247.59 160331.40 160331.40 40582.14 36915.64 159417.86 159417.86 41499.48 37579.88 158500.52 158500.52 42420.65 38240.30 157579.35 656.58 43345.66 38896.88 156654.34 156654.34 652.73 44274.52 39549.61 155725.48 155725.48 45207.25 40198.46 154792.75 154792.75 644.97 40843.43 153856.13 153856.13 641.07 47084.39 152915.61 152915.61 637.15 48028.82 42121.65 151971.18 151971.18 633.21 42754.86 151022.80 49929.52 150070.48 50885.82 44009.42 149114.18 149114.18 621.31 51846.10 44630.73 148153.90 617.31 52810.38 45248.03 147189.62 147189.62 45861.32 146221.33 146221.33 54751.00 46470.58 145249.00 145249.00 55727.39 47075.78 144272.61 144272.61 601.14 56707.84 47676.92 143292.16 143292.16 597.05 57692.38 48273.97 142307.62 592.95 58681.01 48866.92 141318.99 588.83 59673.77 49455.75 140326.23 140326.23 60670.67 50040.44 139329.33 139329.33 580.54 61671.72 50620.98 138328.28 138328.28 62676.93 51197.35 137323.07 137323.07 572.18 63686.34 51769.53 567.97 64699.96 135300.04 135300.04 563.75 65717.79 52901.25 134282.21 134282.21 559.51 53460.76 133260.13 133260.13 555.25 67766.21 132233.79 132233.79 550.97 68796.82 54566.98 131203.18 131203.18 69831.73 55113.66 130168.27 130168.27 542.37 70870.95 55656.03 129129.05 71914.50 56194.07 128085.50 128085.50 72962.40 56727.76 127037.60 127037.60 529.32 74014.66 125985.34 125985.34 75071.31 57782.02 124928.69 124928.69 76132.36 58302.56 123867.64 123867.64 516.12 77197.83 58818.67 122802.17 59330.35 121732.26 121732.26 507.22 79342.11 120657.89 120657.89 502.74 80420.96 60340.31 119579.04 498.25 81504.30 60838.55 118495.70 118495.70 493.73 82592.15 61332.29 117407.85 489.20 83684.54 61821.49 116315.46 116315.46 84781.48 62306.13 115218.52 115218.52 85882.99 62786.21 114117.01 114117.01 475.49 86989.09 63261.70 113010.91 113010.91 470.88 88099.80 63732.58 111900.20 111900.20 466.25 89215.14 64198.83 110784.86 461.60 90335.12 109664.88 109664.88 91459.77 108540.23 100 108540.23 452.25 65569.62 107410.89 107410.89 93723.15 66017.16 106276.85 94861.92 66459.98 105138.08 103 105138.08 438.08 96005.43 66898.06 103994.57 104 103994.57 97153.70 67331.37 102846.30 102846.30 428.53 98306.76 67759.90 101693.24 101693.24 99464.63 100535.37 100535.37 418.90 100627.32 68602.52 99372.68 108 99372.68 101794.85 69016.57 98205.15 98205.15 409.19 102967.25 69425.76 97032.75 110 97032.75 404.30 104144.54 69830.06 95855.46 111 95855.46 399.40 105326.73 70229.46 94673.27 394.47 106513.84 93486.16 113 93486.16 389.53 107705.90 92294.10 92294.10 384.56 108902.93 71398.01 91097.07 91097.07 379.57 110104.95 89895.05 116 89895.05 111311.97 72152.15 117 88688.03 112524.03 72521.68 118 87475.97 364.48 72886.16 86258.87 119 86258.87 359.41 114963.31 73245.58 120 85036.69 116190.57 83809.43 83809.43 349.21 117422.96 73949.10 82577.04 122 82577.04 344.07 118660.47 74293.17 81339.53 338.91 119903.14 74632.09 80096.86 80096.86 333.74 121150.99 74965.82 78849.01 125 78849.01 328.54 122404.04 75294.36 77595.96 126 77595.96 123662.32 75617.68 76337.68 127 76337.68 318.07 124925.83 75935.75 75074.17 312.81 126194.61 76248.56 73805.39 73805.39 307.52 127468.67 76556.08 72531.33 130 72531.33 302.21 128748.05 76858.30 71251.95 71251.95 296.88 130032.75 77155.18 69967.25 69967.25 291.53 131322.81 77446.71 68677.19 68677.19 132618.24 77732.87 67381.76 67381.76 280.76 133919.07 78013.62 66080.93 66080.93 275.34 135225.32 78288.96 136 64774.68 269.89 78558.86 63462.99 63462.99 137854.17 78823.28 62145.83 62145.83 258.94 139176.82 79082.23 60823.18 139 253.43 140504.97 79335.66 59495.03 140 59495.03 247.90 141838.66 79583.55 58161.34 58161.34 242.34 143177.91 79825.89 56822.09 56822.09 144522.74 80062.65 55477.26 143 55477.26 231.16 145873.17 80293.80 54126.83 144 54126.83 225.53 147229.23 80519.33 145 52770.77 148590.94 80739.21 51409.06 146 51409.06 80953.41 50041.68 50041.68 208.51 151331.40 81161.92 48668.60 48668.60 202.79 152710.21 81364.71 149 47289.79 197.04 154094.75 81561.75 45905.25 150 191.27 155485.07 81753.02 44514.93 44514.93 185.48 156881.18 81938.50 43118.82 43118.82 158283.10 82118.16 41716.90 41716.90 173.82 159690.87 82291.98 40309.13 154 167.95 161104.50 82459.94 38895.50 38895.50 162524.02 82622.00 37475.98 37475.98 163949.46 82778.15 36050.54 150.21 165380.84 82928.36 34619.16 34619.16 144.25 166818.18 33181.82 138.26 168261.51 83210.87 31738.49 31738.49 132.24 83343.11 126.20 171166.23 83469.31 28833.77 28833.77 172627.68 83589.45 27372.32 114.05 174095.22 83703.51 25904.78 25904.78 175568.87 83811.44 24431.13 24431.13 101.80 177048.66 22951.34 166 22951.34 178534.61 84008.87 21465.39 21465.39 180026.76 84098.31 19973.24 168 19973.24 181525.13 84181.53 18474.87 18474.87 183029.74 84258.51 16970.26 184540.61 15459.39 15459.39 64.41 84393.63 13942.21 13942.21 58.09 187581.28 84451.73 173 12418.72 51.74 189111.13 84503.47 10888.87 190647.34 84548.84 9352.66 9352.66 38.97 192189.96 84587.81 7810.04 176 7810.04 32.54 193739.01 84620.35 6260.99 26.09 84646.44 4705.49 4705.49 196856.49 84666.05 3143.51 3143.51 13.10 198424.98 84679.14 1575.02 1575.02 200000.00 84685.71 0.00 132 170 172

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