Question

Prepare an amortization chart. For an initial calculation assume you are purchasing a $400,000 home with 5% down at an interest rate of 4%, financed over 30 years using a traditional mortgage.

Answer 1

Down payment = 5% * 400000 = 20000

Loan = 380000 , I = 4% and N = 30

Annual Payment = (Loan * I * (1+I)^N) / ((1+I)^N-1)

= (380000 * 4% * (1+4%)^30) / ((1+4%)^30 - 1)

= 21975.44

Year	Opening balance	Annual Payment	Interest	Principal	Ending Balance
			` = Opening balance * 4%	`= Annual Payment - Interest	`= Opening Balance - Principal
1	3,80,000.00	21,975.44	15,200.00	6,775.44	3,73,224.56
2	3,73,224.56	21,975.44	14,928.98	7,046.46	3,66,178.10
3	3,66,178.10	21,975.44	14,647.12	7,328.32	3,58,849.79
4	3,58,849.79	21,975.44	14,353.99	7,621.45	3,51,228.34
5	3,51,228.34	21,975.44	14,049.13	7,926.31	3,43,302.03
6	3,43,302.03	21,975.44	13,732.08	8,243.36	3,35,058.67
7	3,35,058.67	21,975.44	13,402.35	8,573.09	3,26,485.58
8	3,26,485.58	21,975.44	13,059.42	8,916.02	3,17,569.56
9	3,17,569.56	21,975.44	12,702.78	9,272.66	3,08,296.91
10	3,08,296.91	21,975.44	12,331.88	9,643.56	2,98,653.34
11	2,98,653.34	21,975.44	11,946.13	10,029.31	2,88,624.04
12	2,88,624.04	21,975.44	11,544.96	10,430.48	2,78,193.56
13	2,78,193.56	21,975.44	11,127.74	10,847.70	2,67,345.86
14	2,67,345.86	21,975.44	10,693.83	11,281.61	2,56,064.25
15	2,56,064.25	21,975.44	10,242.57	11,732.87	2,44,331.38
16	2,44,331.38	21,975.44	9,773.26	12,202.18	2,32,129.20
17	2,32,129.20	21,975.44	9,285.17	12,690.27	2,19,438.93
18	2,19,438.93	21,975.44	8,777.56	13,197.88	2,06,241.04
19	2,06,241.04	21,975.44	8,249.64	13,725.80	1,92,515.25
20	1,92,515.25	21,975.44	7,700.61	14,274.83	1,78,240.42
21	1,78,240.42	21,975.44	7,129.62	14,845.82	1,63,394.59
22	1,63,394.59	21,975.44	6,535.78	15,439.66	1,47,954.94
23	1,47,954.94	21,975.44	5,918.20	16,057.24	1,31,897.69
24	1,31,897.69	21,975.44	5,275.91	16,699.53	1,15,198.16
25	1,15,198.16	21,975.44	4,607.93	17,367.51	97,830.65
26	97,830.65	21,975.44	3,913.23	18,062.21	79,768.43
27	79,768.43	21,975.44	3,190.74	18,784.70	60,983.73
28	60,983.73	21,975.44	2,439.35	19,536.09	41,447.64
29	41,447.64	21,975.44	1,657.91	20,317.53	21,130.11
30	21,130.11	21,975.44	845.20	21,130.24	-0.13