You plan to purchase an $100,000 house using a 30-year mortgage obtained from yo

Question

You plan to purchase an $100,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 5 percent. You will make a down payment of 10 percent of the purchase price.

a. Calculate your monthly payments on this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Monthly payment $

b. Calculate the amount of interest and, separately, principal paid in the 250th payment. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Amount of interest $ Amount of principal $

c. Calculate the amount of interest and, separately, principal paid in the 225th payment. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Amount of interest $ Amount of principal $ d. Calculate the amount of interest paid over the life of this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Amount of interest paid $

Explanation / Answer

Loan taken $      90,000.00 100000*(1-10%) EMI $            483.14 PMT(5%/12,30*12,-90000) 250th payment: Interest payment $            178.61 IPMT(5%/12,250,30*12,-90000) Principal payment $            304.53 PPMT(5%/12,250,30*12,-90000) 225th payment: Interest payment $            208.68 IPMT(5%/12,225,30*12,-90000) Balance payment $            274.46 PPMT(5%/12,225,30*12,-90000)

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