You plan to purchase a $ 250,000 house using a 15-year mortgage obtained from yo

Question

You plan to purchase a $ 250,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 3.75%. You will make a down payment of 20% of th epurchase price. Which of the following is correct? Round to two decimals.

I. The monthly payment is $ 1,454.44

II. The interest payment portion of the 60th monthly payment is $457.35

III. Th eprincipal repayment portion of the 180th monthly payment is $4.53

a. I only

b. II only

c. I and II only

d. I and III only

e. I, II, and III

Explanation / Answer

Loan amount = 250,000 (1-.20 ) =$ 200,000

Monthly payment =loan amount /PVAF@@.3125%,180years

                         = 200,000 / 137.51

                         = $ 1454.44

correct option is E " -I ,II ANS III all are correct.

When you make amortization schedule ,this is correct.

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