Question

THE LIFE OF ON. THEİ MORTGAGE BEGAN İDEC.L Hous' mwan WAS PAID ONTHE MORTGAde DuRiNC NTEREs

Answer 1

	Pv	Amount of loan	$525,000
	Rate	Monthly interest rate=(6.6/12)%	0.55%
	Nper	Number of months of mortgage	336	(28years*12)
	PMT	Monthly Payment	$3,430.77	(Using PMT function of excelwith Rate=0.55%,Nper=336,Pv=-525000)
		INTEREST PAID IN FIRST CALENDAR YEAR
			A	B	C=A*0.55%	D=B-C	E=A-D
	Payment on	Month	Beginning Balance	TotalPayment	Interest	Principal	Ending Balance
	January,1	1	$525,000	$3,430.77	$2,887.50	$543.27	$524,456.73
	February, 1	2	$524,456.73	$3,430.77	$2,884.51	$546.26	$523,910.48
	March,1	3	$523,910.48	$3,430.77	$2,881.51	$549.26	$523,361.22
	April,1	4	$523,361.22	$3,430.77	$2,878.49	$552.28	$522,808.93
	May,1	5	$522,808.93	$3,430.77	$2,875.45	$555.32	$522,253.62
	June,1	6	$522,253.62	$3,430.77	$2,872.39	$558.37	$521,695.24
	July,1	7	$521,695.24	$3,430.77	$2,869.32	$561.44	$521,133.80
	August,1	8	$521,133.80	$3,430.77	$2,866.24	$564.53	$520,569.27
	Sep,1	9	$520,569.27	$3,430.77	$2,863.13	$567.64	$520,001.63
	Oct,1	10	$520,001.63	$3,430.77	$2,860.01	$570.76	$519,430.87
	Nov,1	11	$519,430.87	$3,430.77	$2,856.87	$573.90	$518,856.97
	Dec,1	12	$518,856.97	$3,430.77	$2,853.71	$577.05	$518,279.92
			TOTAL	$41,169.22	$34,449.13	$6,720.08
		Interest paid in first calendar year	$34,449.13