#4

1. You have just taken out a mortgage for $575,000, at a fixed rate of 4.75% per year, compounded monthly, and a term of 30 years. Calculate the monthly payments. a. $4,734.21 b. $3,000.08 c. $2,999.47 d. $1,787.56 2. Consider again the mortgage in question 1. Calculate the portion of the fixed payment that is dedicated to interest and the portion that is dedicated to principal in the sixth payment. a. Interest =$2,270.42; Principal Paid =$729.22 b. Interest =$2,264.33; Principal Paid =$734.70 c. Interest =$2,261.61; Principal Paid =$737.86 d. Interest =$2,249.89; Principal Paid =$752.63 3. Consider again the mortgage in question 1. Immediately after the sixth payment, what is the balance remaining on the mortgage? a. $574,521.74 b. $571,354.10 c. $570,616.24 d. $567,213.38 4. Consider again the mortgage in question 1 . What is the total interest paid over the life of the mortgage? a. 545,875.23 b. 504,809.99 c. 503,332.68 d. 500,915.13