Question
A $198,000 mortgage amortized by monthly payments over 20 years is renewable after five years. Interest is4.65% compoundedsemi-annually. Complete parts(a) though(e) (a) What is the
A $198,000 mortgage amortized by monthly payments over 20 years is renewable after five years. Interest is4.65% compoundedsemi-annually. Complete parts(a) though(e)
(a) What is the size of the monthlypayments?
The size of a monthly payment is $
.
(Round to the nearest cent asneeded.)
(b) How much interest is paid during the firstyear?
The interest paid in the first year is $
.
(Round to the nearest cent asneeded.)
(c) How much of the principal is repaid during the firstfive-year term?
The amount of the principal repaid during the firstfive-year term is $
.
(Round to the nearest cent asneeded.)
(d) If the mortgage is renewed for a furtherfive-year term at5.24% compoundedsemi-annually, what will be the size of the monthlypayments?
The size of the monthly payments is $
(Round to the nearest cent asneeded.)
(e) Construct a partial amortization schedule showing details of the first three payments for each of the twofive-year terms.
Complete the schedule for the first three payments of the firstfive-year term.
(Round to the nearest cent as needed. Do not include the$ symbol in youranswers.)
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