monthly payments

Jun 17th, 2015
Studypool Tutor
Howard Payne University
Price: $30 USD

Tutor description

Prepare an amortization table for the first six months of the traditional 30-year mortgage. How much of the first payment goes toward the principal.

Word Count: 879
Showing Page: 1/6
Question: What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage?Answer:The payment for a loan repaid with equalpaymentsis the annuity payment with the loanvalue as the PV of the annuity. So, the 30-year loan payment will be:PVA =C({1 [1/(1 +r)]t} /r)$25,000,000 =C{[1 1 / (1 + .068/12)360] / (.068/12)}C=$162,981.30And the monthly payments for the 20-year loan will be:PVA =C({1 [1/(1 +r)]t} /r)$25,000,000 =C{[1 1 / (1 + .068/12)240] / (.068/12)}C=$190,834.88Question: Prepare an amortization table for the first six months of the traditional 30-year mortgage. How much of the first payment goes toward the principal?Answer:Year Beginning Bal. Total Payment Interest Payment Principal Payment Ending Bal.1 $25,000,000.00 $162,981.30 $141,666.67 $21,314.63 $24,978,685.372 24,978,685.37 162,981.30 141,545.88 21,435.41 24,957,249.963 24,957,249.96 162,981.30 141,424.42 21,556.88 24,935,693.084 24,935,693.08 162,981.30 141,302.26 21,679.04 24,914,014.045 24,914,014.04 162,981.30 141,179.41 21,801.80 24,892,212.166 24,892,212.16 162,981.30 141,055.87 21,925.43 24,870,286.733.) How long would it take for S&S Air to pay off the smart

Review from student

Studypool Student
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors