a house sells for $515,500 and a 4% down - payment is made. a mortgage is secured at 4% for 40 years…

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.\npart: 0 / 3\npart 1 of 3\npayment number interest payment on principal balance of loan\n1 $ $ $

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.\npart: 0 / 3\npart 1 of 3\npayment number interest payment on principal balance of loan\n1 $ $ $

Answer

Explanation:

Step1: Calculate monthly interest rate

The annual interest rate is 4% or 0.04. The monthly interest rate $r$ is $\frac{0.04}{12}$.

Step2: Calculate interest for month 1

The initial loan balance $B_0 = 494880$. The interest for the first - month $I_1$ is calculated as $I_1=B_0\times r=494880\times\frac{0.04}{12}=$1649.60$.

Step3: Calculate payment on principal for month 1

The monthly payment $M = 2068.60$. The payment on principal for the first month $P_1$ is $P_1 = M - I_1=2068.60 - 1649.60=$419.00$.

Step4: Calculate balance of loan after month 1

The balance of the loan after the first month $B_1$ is $B_1=B_0 - P_1=494880 - 419=$494461.00$.

Answer:

Interest: $$1649.60$ Payment on Principal: $$419.00$ Balance of Loan: $$494461.00$