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Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $  (b) Construct an amortization schedule for the first four months of Michael's mortgage.

Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $  (b) Construct an amortization schedule for the first four months of Michael's mortgage.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.)
(a)
What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan?
$ 
(b)
Construct an amortization schedule for the first four months of Michael's mortgage.
Payment
Number		 Monthly
Payment
(in $)		 Monthly
Interest
(in $)		 Portion Used
to Reduce
Principal
(in $)		 Loan
Balance
(in $)
0       $ 
1 $  $  $  $ 
2 $  $  $  $ 
3 $  $  $  $ 
4 $  $  $  $ 
(c)
If the annual property taxes are $1,670 and the hazard insurance premium is $700 per year, what is the total monthly PITI of Michael's loan (in $)?
$ 

Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed

Monthly Payments
(Necessary to amortize a loan of $1,000)
Interest
Rate (%)		 5
Years		 10
Years		 15
Years		 20
Years		 25
Years		 30
Years		 35
Years		 40
Years
3.50 18.19 9.89 7.15 5.80 5.01 4.49 4.13 3.87
3.75 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03
4.00 18.42 10.12 7.40 6.06 5.28 4.77 4.43 4.18
4.25 18.53 10.24 7.52 6.19 5.42 4.92 4.58 4.34
4.50 18.64 10.36 7.65 6.33 5.56 5.07 4.73 4.50
4.75 18.76 10.48 7.78 6.46 5.70 5.22 4.89 4.66
5.00 18.87 10.61 7.91 6.60 5.85 5.37 5.05 4.82
5.25 18.99 10.73 8.04 6.74 5.99 5.52 5.21 4.99
5.50 19.10 10.85 8.17 6.88 6.14 5.68 5.37 5.16
5.75 19.22 10.98 8.30 7.02 6.29 5.84 5.54 5.33
6.00 19.33 11.10 8.44 7.16 6.44 6.00 5.70 5.50
6.25 19.45 11.23 8.57 7.31 6.60 6.16 5.87 5.68
6.50 19.57 11.35 8.71 7.46 6.75 6.32 6.04 5.85
6.75 19.68 11.48 8.85 7.6 6.91 6.49 6.21 6.03
7.00 19.80 11.61 8.99 7.75 7.07 6.65 6.39 6.21
7.25 19.92 11.74 9.13 7.90 7.23 6.82 6.56 6.40
7.50 20.04 11.87 9.27 8.06 7.39 6.99 6.74 6.58
7.75 20.16 12.00 9.41 8.21 7.55 7.16 6.92 6.77
8.00 20.28 12.13 9.56 8.36 7.72 7.34 7.10 6.95
8.25 20.40 12.27 9.70 8.52 7.88 7.51 7.28 7.14
8.50 20.52 12.40 9.85 8.68 8.05 7.69 7.47 7.33
8.75 20.64 12.53 9.99 8.84 8.22 7.87 7.65 7.52
9.00 20.76 12.67 10.14 9.00 8.39 8.05 7.84 7.71
9.25 20.88 12.80 10.29 9.16 8.56 8.23 8.03 7.91
9.50 21.00 12.94 10.44 9.32 8.74 8.41 8.22 8.10
9.75 21.12 13.08 10.59 9.49 8.91 8.59 8.41 8.30
10.00 21.25 13.22 10.75 9.65 9.09 8.78 8.60 8.49
10.25 21.37 13.35 10.90 9.82 9.26 8.96 8.79 8.69
10.50 21.49 13.49 11.05 9.98 9.44 9.15 8.98 8.89
10.75 21.62 13.63 11.21 10.15 9.62 9.33 9.18 9.08
11.00 21.74 13.78 11.37 10.32 9.80 9.52 9.37 9.28
11.25 21.87 13.92 11.52 10.49 9.98 9.71 9.56 9.48
11.50 21.99 14.06 11.68 10.66 10.16 9.90 9.76 9.68
11.75 22.12 14.20 11.84 10.84 10.35 10.09 9.96 9.88
12.00 22.24 14.35 12.00 11.01 10.53 10.29 10.16 10.08
12.25 22.37 14.49 12.16 11.19 10.72 10.48 10.35 10.29
12.50 22.50 14.64 12.33 11.36 10.9 10.67 10.55 10.49
12.75 22.63 14.78 12.49 11.54 11.09 10.87 10.75 10.69
13.00 22.75 14.93 12.65 11.72 11.28 11.06 10.95 10.90
 
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