Chapter 5 Financial Planning Exercise 8 Calculating monthly mortgage payments EXHIBIT A Table of Monthly Mortgage Payments (Monthly 5.9 Payments Necessary to Repay a $10,000 Loan) The monthly loan payments on a mortgage vary not only by the amount of the loan, but also by the rate of interest and loan maturity. LOAN MATURITY Rate of 10 Years 15 20 25 30 Interest Years Years Years Years 5.0% $106.07 $79.08 $66.00 $58.46 $53.68 5.5 108.53 81.71 68.79 61.41 56.79 6.0 111.02 84.39 71.64 64.43 59.96 113.55 87.11 74.56 67.52 63.21 7.0 116.11 89.88 77.53 70.68 66.53 7.5 118.71 92.71 80.56 73.90 69.93 8.0 121.33 95.57 83.65 77.19 73.38 8.5 123.99 98.48 86.79 80.53 76.90 9.0 126.68 101.43 89.98 83.92 80.47 9.5 129.40 104.43 93.22 87.37 84.09 10.0 132.16 107.47 96.51 90.88 87.76 10.5 134.94 110.54 99.84 94.42 91.48 11.0 137.76 113.66 103.22 98.02 95.24 Note: To use: (1) Divide amount of the loan by $10,000, (2) find the loan payment amount in the table for the specific interest rate and maturity, and (3) multiply the amount from Step 1 by the amount from Step 2. Find the monthly mortgage payments on the following mortgage loans using either your calculator or the table above. a. $75,000 at 11.0 percent for 15 years. Do not round intermediate calculations. Round the answer to the nearest cent. b. $105,000 at 5.5 percent for 20 years. Do not round intermediate calculations. Round the answer to the nearest cent. c. $95,000 at 5 percent for 15 years. Do not round intermediate calculations. Round the answer to the nearest cent