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Date 1-Jan 1-Feb 1-Mar 1-Apr Payment $1,287.14 1,287.14 1,287.14 1,287.14 Payment Schedule Year 3 Interest $696.62 693.79 690.95 688.09 Principal $590.52 593.35 596.19 599.05 Loan

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Date 1-Jan 1-Feb 1-Mar 1-Apr Payment $1,287.14 1,287.14 1,287.14 1,287.14 Payment Schedule Year 3 Interest $696.62 693.79 690.95 688.09 Principal $590.52 593.35 596.19 599.05 Loan Balance $144,790.71 144,197.36 143,601.17 143,002.12 4a. $ How much principal is paid off with the Oct. 1 payment in Year 1? 4b. What is the total amount of interest paid in Year 2? 4c. Year: 4d. In which year will more principal be paid off; Year 2 or Year 3? What amount of interest is applicable to July of Year 2? When will the interest charge for January of Year 3 be paid? 4e. 5. Practice Problems (8 Parts) Part 1: Compute the monthly payment required to amortize the following loans: 1a. $60,000 @ 4.75% amortized over 15 years. $ N- i/y= PV= PMT= FV= 1b. $60,000 @ 4.75% amortized over 30 years. $ N= i/y= PV= PMT= FV= Practice Problems: Part 1 continued of 8 parts 1c. $112,500 @ 5.0% amortized over 15 years. N- i/y= PV: PMT= FV= 1d. $535,000 @ 8.0% amortized over 30 years. $ N= Vy= PV= PMT- FV- le. $535,000 @ 8.0% amortized over 50 years, N= V/y PV= PMT= FV= $ 1f. $535,000 @ 8.0% with interest only payments. Show work here: (think of the interest formulas) Date 1-Jan 1-Feb 1-Mar 1-Apr Payment $1,287.14 1,287.14 1,287.14 1,287.14 Payment Schedule Year 3 Interest $696.62 693.79 690.95 688.09 Principal $590.52 593.35 596.19 599.05 Loan Balance $144,790.71 144,197.36 143,601.17 143,002.12 4a. $ How much principal is paid off with the Oct. 1 payment in Year 1? 4b. What is the total amount of interest paid in Year 2? 4c. Year: 4d. In which year will more principal be paid off; Year 2 or Year 3? What amount of interest is applicable to July of Year 2? When will the interest charge for January of Year 3 be paid? 4e. 5. Practice Problems (8 Parts) Part 1: Compute the monthly payment required to amortize the following loans: 1a. $60,000 @ 4.75% amortized over 15 years. $ N- i/y= PV= PMT= FV= 1b. $60,000 @ 4.75% amortized over 30 years. $ N= i/y= PV= PMT= FV= Practice Problems: Part 1 continued of 8 parts 1c. $112,500 @ 5.0% amortized over 15 years. N- i/y= PV: PMT= FV= 1d. $535,000 @ 8.0% amortized over 30 years. $ N= Vy= PV= PMT- FV- le. $535,000 @ 8.0% amortized over 50 years, N= V/y PV= PMT= FV= $ 1f. $535,000 @ 8.0% with interest only payments. Show work here: (think of the interest formulas)

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