Chapter $14$ Assignment

Financial Institutions

Name

A $$200,000$ mortgage with a $30$ year term, and a $5\%$ annual interest rate requires a monthly payment of $$1073\mathrm{.}64.$

Do not round during your calculations. Carry all numbers in your calculations to at least $4$ decimal places and all answers to $2$ decimal places.

What are the principal and interest portions of the first payment?

Interest:

principal:

new principal balance:

What are the principal and interest portions of the second payment?

interest:

principal:

new principal balance: