Mr Johnson plans to buy a new house in September 2014. The sale price of the hou

Question

Mr Johnson plans to buy a new house in September 2014. The sale price of the house is $366,000. He is going to pay 20% down payments and borrow additional 80% from Wells Fargo with a 20-year, 3.875% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payments starting October 2014 for a total of 20 years. Question 1: Calculate the required monthly mortage payment. Question 2: Construct amortization table for Mr Johnson. Question 3: Mr Johnson should prepare his 2014 tax filings in early 2015. Estimate the total mortgage interest payments that he can use for his 2014 tax deduction.

PLEASE SHOW ALL STEPS. Thank you.

Explanation / Answer

(1) Monthly Instalment =$1755

(2) amortization table for Mr Johnson-

(3) Deduction for Interest to be claimed for F.Y.2014-15 for Income Tax =$5634/-

S.No Monthly Installment Interest Principal Balance 0 292800 1 1755 946 810 291990 2 1755 943 812 291178 3 1755 940 815 290363 4 1755 938 817 289546 5 1755 935 820 288726 6 1755 932 823 287903 7 1755 930 825 287078 8 1755 927 828 286250 9 1755 924 831 285419 10 1755 922 833 284585 11 1755 919 836 283749 12 1755 916 839 282911 13 1755 914 842 282069 14 1755 911 844 281225 15 1755 908 847 280378 16 1755 905 850 279528 17 1755 903 852 278676 18 1755 900 855 277821 19 1755 897 858 276963 20 1755 894 861 276102 21 1755 892 864 275238 22 1755 889 866 274372 23 1755 886 869 273503 24 1755 883 872 272631 25 1755 880 875 271756 26 1755 878 878 270879 27 1755 875 880 269998 28 1755 872 883 269115 29 1755 869 886 268229 30 1755 866 889 267340 31 1755 863 892 266448 32 1755 860 895 265554 33 1755 858 898 264656 34 1755 855 900 263756 35 1755 852 903 262852 36 1755 849 906 261946 37 1755 846 909 261037 38 1755 843 912 260125 39 1755 840 915 259210 40 1755 837 918 258292 41 1755 834 921 257371 42 1755 831 924 256447 43 1755 828 927 255520 44 1755 825 930 254590 45 1755 822 933 253657 46 1755 819 936 252721 47 1755 816 939 251782 48 1755 813 942 250840 49 1755 810 945 249895 50 1755 807 948 248946 51 1755 804 951 247995 52 1755 801 954 247041 53 1755 798 957 246084 54 1755 795 960 245123 55 1755 792 964 244160 56 1755 788 967 243193 57 1755 785 970 242223 58 1755 782 973 241250 59 1755 779 976 240274 60 1755 776 979 239295 61 1755 773 982 238313 62 1755 770 986 237327 63 1755 766 989 236338 64 1755 763 992 235346 65 1755 760 995 234351 66 1755 757 998 233353 67 1755 754 1002 232352 68 1755 750 1005 231347 69 1755 747 1008 230339 70 1755 744 1011 229327 71 1755 741 1015 228313 72 1755 737 1018 227295 73 1755 734 1021 226274 74 1755 731 1024 225250 75 1755 727 1028 224222 76 1755 724 1031 223191 77 1755 721 1034 222156 78 1755 717 1038 221119 79 1755 714 1041 220078 80 1755 711 1044 219033 81 1755 707 1048 217985 82 1755 704 1051 216934 83 1755 701 1055 215880 84 1755 697 1058 214822 85 1755 694 1061 213760 86 1755 690 1065 212696 87 1755 687 1068 211627 88 1755 683 1072 210556 89 1755 680 1075 209480 90 1755 676 1079 208402 91 1755 673 1082 207320 92 1755 669 1086 206234 93 1755 666 1089 205145 94 1755 662 1093 204052 95 1755 659 1096 202956 96 1755 655 1100 201856 97 1755 652 1103 200753 98 1755 648 1107 199646 99 1755 645 1110 198536 100 1755 641 1114 197422 101 1755 638 1118 196304 102 1755 634 1121 195183 103 1755 630 1125 194058 104 1755 627 1128 192930 105 1755 623 1132 191798 106 1755 619 1136 190662 107 1755 616 1139 189523 108 1755 612 1143 188380 109 1755 608 1147 187233 110 1755 605 1150 186082 111 1755 601 1154 184928 112 1755 597 1158 183770 113 1755 593 1162 182609 114 1755 590 1165 181443 115 1755 586 1169 180274 116 1755 582 1173 179101 117 1755 578 1177 177924 118 1755 575 1181 176744 119 1755 571 1184 175559 120 1755 567 1188 174371 121 1755 563 1192 173179 122 1755 559 1196 171983 123 1755 555 1200 170784 124 1755 551 1204 169580 125 1755 548 1207 168373 126 1755 544 1211 167161 127 1755 540 1215 165946 128 1755 536 1219 164727 129 1755 532 1223 163504 130 1755 528 1227 162276 131 1755 524 1231 161045 132 1755 520 1235 159810 133 1755 516 1239 158571 134 1755 512 1243 157328 135 1755 508 1247 156081 136 1755 504 1251 154830 137 1755 500 1255 153575 138 1755 496 1259 152316 139 1755 492 1263 151053 140 1755 488 1267 149785 141 1755 484 1271 148514 142 1755 480 1276 147238 143 1755 475 1280 145959 144 1755 471 1284 144675 145 1755 467 1288 143387 146 1755 463 1292 142095 147 1755 459 1296 140799 148 1755 455 1300 139498 149 1755 450 1305 138194 150 1755 446 1309 136885 151 1755 442 1313 135572 152 1755 438 1317 134255 153 1755 434 1322 132933 154 1755 429 1326 131607 155 1755 425 1330 130277 156 1755 421 1334 128943 157 1755 416 1339 127604 158 1755 412 1343 126261 159 1755 408 1347 124914 160 1755 403 1352 123562 161 1755 399 1356 122206 162 1755 395 1360 120845 163 1755 390 1365 119481 164 1755 386 1369 118111 165 1755 381 1374 116738 166 1755 377 1378 115359 167 1755 373 1383 113977 168 1755 368 1387 112590 169 1755 364 1392 111198 170 1755 359 1396 109802 171 1755 355 1401 108402 172 1755 350 1405 106997 173 1755 346 1410 105587 174 1755 341 1414 104173 175 1755 336 1419 102754 176 1755 332 1423 101331 177 1755 327 1428 99903 178 1755 323 1432 98471 179 1755 318 1437 97034 180 1755 313 1442 95592 181 1755 309 1446 94146 182 1755 304 1451 92694 183 1755 299 1456 91239 184 1755 295 1460 89778 185 1755 290 1465 88313 186 1755 285 1470 86843 187 1755 280 1475 85369 188 1755 276 1479 83889 189 1755 271 1484 82405 190 1755 266 1489 80916 191 1755 261 1494 79422 192 1755 256 1499 77924 193 1755 252 1503 76420 194 1755 247 1508 74912 195 1755 242 1513 73399 196 1755 237 1518 71881 197 1755 232 1523 70358 198 1755 227 1528 68830 199 1755 222 1533 67297 200 1755 217 1538 65759 201 1755 212 1543 64216 202 1755 207 1548 62669 203 1755 202 1553 61116 204 1755 197 1558 59558 205 1755 192 1563 57995 206 1755 187 1568 56428 207 1755 182 1573 54855 208 1755 177 1578 53277 209 1755 172 1583 51694 210 1755 167 1588 50106 211 1755 162 1593 48512 212 1755 157 1598 46914 213 1755 151 1604 45310 214 1755 146 1609 43701 215 1755 141 1614 42088 216 1755 136 1619 40468 217 1755 131 1624 38844 218 1755 125 1630 37214 219 1755 120 1635 35579 220 1755 115 1640 33939 221 1755 110 1645 32294 222 1755 104 1651 30643 223 1755 99 1656 28987 224 1755 94 1661 27325 225 1755 88 1667 25658 226 1755 83 1672 23986 227 1755 77 1678 22309 228 1755 72 1683 20626 229 1755 67 1688 18937 230 1755 61 1694 17243 231 1755 56 1699 15544 232 1755 50 1705 13839 233 1755 45 1710 12128 234 1755 39 1716 10413 235 1755 34 1721 8691 236 1755 28 1727 6964 237 1755 22 1733 5231 238 1755 17 1738 3493 239 1755 11 1744 1749 240 1755 6 1749 0

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.