You plan to purchase an $60,000 house using a 30-year mortgage obtained from you
ID: 2811971 • Letter: Y
Question
You plan to purchase an $60,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.5 percent. You will make a down payment of 10 percent of the purchase price.
a. Calculate your monthly payments on this mortgage
b. Calculate the amount of interest and, separately, principal paid in the 260th payment
c. Calculate the amount of interest and, separately, principal paid in the 290th payment.
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))
Explanation / Answer
Amount $ 60,000.00 Down Payment(10% of $60000) $ 6,000.00 Balance Amount $ 54,000.00 Annual Interest rate 8.50% Terms in years 360 Payment((8.5%/12),360,$54000,0) ($415.21) a) Monthly payment on this mortgage= $415.21 b) Interest and Principal seperately on 260th Payment Interest $ 211.67 Principal $ 203.55 Total $ 415.21 c) Interest and Principal seperately on 290th Payment Interest $ 163.66 Principal $ 251.55 Total $ 415.21 d) Interest over the life of mortgage Total amount paid($415.21*30*12 $ 1,49,475.60 Less: Mortgage Amount $ 54,000.00 Amount of Interest Paid($149475.60-$54000) $ 95,475.60 (A) (B) (C )=(A)*(8.5%/12) (D )=(B)-(C ) Period Loan Balance Payment Interest Principal 1 $ 54,000.00 $ 415.21 $ 382.50 $ 32.71 2 $ 53,967.29 $ 415.21 $ 382.27 $ 32.95 3 $ 53,934.34 $ 415.21 $ 382.03 $ 33.18 4 $ 53,901.16 $ 415.21 $ 381.80 $ 33.41 5 $ 53,867.75 $ 415.21 $ 381.56 $ 33.65 6 $ 53,834.10 $ 415.21 $ 381.32 $ 33.89 7 $ 53,800.21 $ 415.21 $ 381.08 $ 34.13 8 $ 53,766.08 $ 415.21 $ 380.84 $ 34.37 9 $ 53,731.71 $ 415.21 $ 380.60 $ 34.61 10 $ 53,697.10 $ 415.21 $ 380.35 $ 34.86 11 $ 53,662.24 $ 415.21 $ 380.11 $ 35.11 12 $ 53,627.13 $ 415.21 $ 379.86 $ 35.35 13 $ 53,591.78 $ 415.21 $ 379.61 $ 35.60 14 $ 53,556.18 $ 415.21 $ 379.36 $ 35.86 15 $ 53,520.32 $ 415.21 $ 379.10 $ 36.11 16 $ 53,484.21 $ 415.21 $ 378.85 $ 36.37 17 $ 53,447.84 $ 415.21 $ 378.59 $ 36.62 18 $ 53,411.22 $ 415.21 $ 378.33 $ 36.88 19 $ 53,374.33 $ 415.21 $ 378.07 $ 37.15 20 $ 53,337.19 $ 415.21 $ 377.81 $ 37.41 21 $ 53,299.78 $ 415.21 $ 377.54 $ 37.67 22 $ 53,262.11 $ 415.21 $ 377.27 $ 37.94 23 $ 53,224.17 $ 415.21 $ 377.00 $ 38.21 24 $ 53,185.96 $ 415.21 $ 376.73 $ 38.48 25 $ 53,147.48 $ 415.21 $ 376.46 $ 38.75 26 $ 53,108.73 $ 415.21 $ 376.19 $ 39.03 27 $ 53,069.70 $ 415.21 $ 375.91 $ 39.30 28 $ 53,030.40 $ 415.21 $ 375.63 $ 39.58 29 $ 52,990.81 $ 415.21 $ 375.35 $ 39.86 30 $ 52,950.95 $ 415.21 $ 375.07 $ 40.14 31 $ 52,910.81 $ 415.21 $ 374.78 $ 40.43 32 $ 52,870.38 $ 415.21 $ 374.50 $ 40.71 33 $ 52,829.67 $ 415.21 $ 374.21 $ 41.00 34 $ 52,788.66 $ 415.21 $ 373.92 $ 41.29 35 $ 52,747.37 $ 415.21 $ 373.63 $ 41.59 36 $ 52,705.78 $ 415.21 $ 373.33 $ 41.88 37 $ 52,663.90 $ 415.21 $ 373.04 $ 42.18 38 $ 52,621.73 $ 415.21 $ 372.74 $ 42.48 39 $ 52,579.25 $ 415.21 $ 372.44 $ 42.78 40 $ 52,536.47 $ 415.21 $ 372.13 $ 43.08 41 $ 52,493.39 $ 415.21 $ 371.83 $ 43.39 42 $ 52,450.01 $ 415.21 $ 371.52 $ 43.69 43 $ 52,406.31 $ 415.21 $ 371.21 $ 44.00 44 $ 52,362.31 $ 415.21 $ 370.90 $ 44.31 45 $ 52,318.00 $ 415.21 $ 370.59 $ 44.63 46 $ 52,273.37 $ 415.21 $ 370.27 $ 44.94 47 $ 52,228.43 $ 415.21 $ 369.95 $ 45.26 48 $ 52,183.17 $ 415.21 $ 369.63 $ 45.58 49 $ 52,137.58 $ 415.21 $ 369.31 $ 45.91 50 $ 52,091.68 $ 415.21 $ 368.98 $ 46.23