Daniel and Jan agreed to pay $545,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 25-year mortgage at a fixed rate of 63%. (Use Table 15.1.) a. How much is their monthly payment? Note: Do not round intermediate calculations. Round your answer to the nearest cent. Monthly payment b. After the first payment, what would be the balance of the principal? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number Portion to- Interest Principal Balance of loan outstanding
Daniel and Jan agreed to pay $545,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 25-year mortgage at a fixed rate of 63%. (Use Table 15.1.) a. How much is their monthly payment? Note: Do not round intermediate calculations. Round your answer to the nearest cent. Monthly payment b. After the first payment, what would be the balance of the principal? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number Portion to- Interest Principal Balance of loan outstanding
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Daniel and Jan agreed to pay $545,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment.
They have a 25-year mortgage at a fixed rate of 63 %. (Use Table 15.1.)
8
a. How much is their monthly payment?
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Monthly payment
b. After the first payment, what would be the balance of the principal?
Note: Do not round intermediate calculations. Round your answers to the nearest cent.
Payment
number
1
Portion to-
Interest
Principal
Balance of loan
outstanding
Transcribed Image Text:Amortization table (mortgage principal and interest per $1,000)
Interest
Only
0.16667
0.17708
0.18750
0.19792
0.20833
0.21875
0.22917
0.23958
0.25000
0.26042
0.27083
0.28125
0.29167
0.30208
0.31250
0.32292
0.33333
0.34375
0.35417
0.36458
0.37500
0.38542
0.39583
0.40625
0.41667
0.42708
0.43750
0.44792
0.45833
0.46875
0.47917
0.48958
0.50000
0.51042
0.52083
0.53125
0.54167
0.55208
0.56250
Rate
2.000
2.125
2.250
2.375
2.500
2.625
2.750
2.875
3.000
3.125
3.250
3.375
3.500
3.625
3.750
3.875
4.000
4.125
4.250
4.375
4.500
4.625
4.750
4.875
5.000
5.125
5.250
5.375
5.500
5.625
5.750
5.875
6.000
6.125
6.250
6.375
6.500
6.625
6.750
10 Year
9.20135
9.25743
9.31374
9.37026
9.42699
9.48394
9.54110
9.59848
9.65607
9.71388
9.77190
9.83014
9.88859
9.94725
10.00612
10.06521
10.12451
10.18403
10.24375
10.30369
10.36384
10.42420
10.48477
10.54556
10.60655
10.66776
10.72917
10.79079
10.85263
10.91467
10.97692
11.03938
11.10205
11.16493
11.22801
11.29130
11.35480
11.41850
11.48241
15 Year
6.43509
6.49281
6.55085
6.60921
6.66789
6.72689
6.78622
6.84586
6.90582
6.96609
7.02669
7.08760
7.14883
7.21037
7.27222
7.33440
7.39688
7.45968
7.52278
7.58620
7.64993
7.71397
7.77832
7.84297
7.90794
7.97320
8.03878
8.10465
8.17083
8.23732
8.30410
8.37118
8.43857
8.50625
8.57423
8.64250
8.71107
8.77994
8.84909
20 Year
5.05883
5.11825
5.17808
5.23834
5.29903
5.36014
5.42166
5.48361
5.54598
5.60876
5.67196
5.73557
5.79960
5.86404
5.92888
5.99414
6.05980
6.12587
6.19234
6.25922
6.32649
6.39417
6.46224
6.53070
6.59956
6.66881
6.73844
6.80847
6.87887
6.94966
7.02084
7.09238
7.16431
7.23661
7.30928
7.38232
7.45573
7.52950
7.60364
25 Year
4.23854
4.29966
4.36131
4.42348
4.48617
4.54938
4.61311
4.67735
4.74211
4.80738
4.87316
4.93945
5.00624
5.07352
5.14131
5.20959
5.27837
5.34763
5.41738
5.48761
5.55832
5.62951
5.70117
5.77330
5.84590
5.91896
5.99248
6.06645
6.14087
6.21575
6.29106
6.36682
6.44301
6.51964
6.59669
6.67417
6.75207
6.83039
6.90912
30 Year
3.69619
3.75902
3.82246
3.88653
3.95121
4.01651
4.08241
4.14892
4.21604
4.28375
4.35206
4.42096
4.49045
4.56051
4.63116
4.70237
4.77415
4.84650
4.91940
4.99285
5.06685
5.14140
5.21647
5.29208
5.36822
5.44487
5.52204
5.59971
5.67789
5.75656
5.83573
5.91538
5.99551
6.07611
6.15717
6.23870
6.32068
6.40311
6.48598
40 Year
3.02826
3.09444
3.16142
3.22921
3.29778
3.36714
3.43728
3.50818
3.57984
3.65226
3.72541
3.79930
3.87391
3.94923
4.02526
4.10198
4.17938
4.25746
4.33620
4.41559
4.49563
4.57629
4.65758
4.73947
4.82197
4.90505
4.98870
5.07293
5.15770
5.24302
5.32888
5.41525
5.50214
5.58952
5.67740
5.76575
5.85457
5.94385
6.03357
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