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. 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 $494040.00 alternate answer: payment number interest payment on principal balance of loan 2 $1648.20 $420.40 $494,040.60 part: 2 / 3 part 3 of 3 payment number interest payment on principal balance of loan 3 $ $ $
Answer
Explanation:
Step1: Calculate monthly interest rate
The annual interest rate is 4%, so the monthly interest rate $r=\frac{0.04}{12}$.
Step2: Calculate interest for month 3
The balance of the loan at the start of month 3 is $494040$. The interest for month 3, $I = 494040\times\frac{0.04}{12}\approx1646.80$.
Step3: Calculate payment on principal for month 3
The monthly payment is $2068.60$. The payment on principal $P = 2068.60 - 1646.80=421.80$.
Step4: Calculate balance of loan for month 3
The balance of the loan $B=494040 - 421.80 = 493618.20$.
Answer:
| Payment number | Interest | Payment on Principal | Balance of Loan |
|---|---|---|---|
| 3 | $1646.80 | $421.80 | $493618.20 |