Question

question 5 of 11 (1 point) | question attempt 1 of 10
a house sells for $515,500 and a 4% down - payment is made. a mortgage is secured at 4% for 40 years. compute an amortization schedule for the first 3 months. round your answers to two decimal places, if necessary.
the value of the mortgage is $494,880 and the monthly payment is $2068.60.
part 1 of 3
payment number interest payment on principal balance of loan
1 $1649.60 $419.00 $494461.00
part 2 of 3
payment number interest payment on principal balance of loan
2 $1648.20 $420.40 $494040.60
alternate answer:
payment number interest payment on principal balance of loan
2 $1648.20 $419.40 $494,040.60
part: 2 / 3
part 3 of 3
payment number interest payment on principal balance of loan
3 $1646.80 $421.80 $

Explanation:

Step1: Calculate interest for month 3

The monthly interest rate $r=\frac{4\%}{12}=\frac{0.04}{12}$. The balance at the end of month 2 is $B_2 = 494040.60$. Interest $I_3=B_2\times r=494040.60\times\frac{0.04}{12}\approx1646.80$.

Step2: Calculate payment on principal for month 3

The monthly payment is $M = 2068.60$. Payment on principal $P_3 = M - I_3=2068.60 - 1646.80 = 421.80$.

Step3: Calculate balance of loan for month 3

Balance $B_3=B_2 - P_3=494040.60-421.80 = 493618.80$.

Answer:

$493618.80$