A couple has decided to purchase a home. The negotiated price is $175,000 The couple can pay the standard 20% down payment, and the rest will be financed at the annual interest rate of 4.5% for a 30-year loan. Some questions:

1. Is a mortgage agreement a type of annuity? Yes

2. Calculate the down payment. $ 35,000.00

3. Calculate the amount to be borrowed (amortized). $ 140,000.00

4. Calculate the monthly payment. $709.36

5. Since there will be 360 monthly payments, how much will actually be paid for the home? Don't forget to add in the down payment. $290,369.40

6. How much of your result from Question 5 is interes $115,369.40

7. Complete the ammortization table below for all 360 payments. As you complete the rows, pay attention to the amount of interest and the amount of principal that is paid each month.

show excel formula.

I just wanna know how to calculate the interest due

Period # Outstanding Principal Interest Due Payment Amount Portion of Principal Reduced

1

2

3

...