Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra$100 each month towards the principal. Determine the ending balance after the first month?Payment Beginning Monthly ExtraBalanceNumberPayment Payment1210,000.00a.100.002b.a.100.003208,351.69a.100.004207,521.35a.100.005206,686.86 a.100.00Towards TowardsInterest Principal1,050.001,045.89d.1,037.611,033.43EndingBalance822.10 209,177.90826.21830.34e.838.67C.207,521.35206,686.86205,848.19

Loan amortization refers to the spread of periodic repayment. An amortization schedule is prepared…

Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Towards Towards Number Balance Payment Payment Interest Principal 1 210,000.00 a. 100.00 1,050.00 822.10 2 100.00 1,045.89 826.21 3 100.00 d. 830.34 4 100.00 1,037.61 5 100.00 1,033.43 b. a. 208,351.69 a. 207,521.35 a. 206,686.86 a. 838.67 Ending Balance 209,177.90 C. 207,521.35 206,686.86 205,848.19

Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Towards Towards Number Balance Payment Payment Interest Principal 1 210,000.00 a. 100.00 1,050.00 822.10 2 100.00 1,045.89 826.21 3 100.00 d. 830.34 4 100.00 1,037.61 5 100.00 1,033.43 b. a. 208,351.69 a. 207,521.35 a. 206,686.86 a. 838.67 Ending Balance 209,177.90 C. 207,521.35 206,686.86 205,848.19

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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