Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! Please help me on all parts of this question. I want to make sure I did it correctly. thankyou! List the formula's variables and

Hello! Please help image text in transcribedme on all parts of this question. I want to make sure I did it correctly. thankyou!

List the formula's variables and write the number that each variable equals, like APR = 0.045 . Write the formula with the numbers plugged into the correct places for partial credit when needed. Find the payment. Don't round until the part's final answer. Either round final money answers to the nearest penny, or round down to lower penny as makes sense for savings balances and round up to higher penny for payment amounts. If the final answer is within a penny, it's close enough for me. Either round final percent answers to the nearest tenth of a percent or down to the lower tenth of a percent for savings plans. A tenth of a percent is like 2.8%. 1. Pat has a $400,000 mortgage loan with a 30 -year term and an interest rate of 5.25%, compounded monthly. a) How much is Pat's monthly mortgage payment? b) How much interest was charged on their loan in the very first month? Hint: The APR (annual) is 5.25% so the monthly interest rate is c) Based on your answers to parts a) and b), what percentage of their first payment went to paying off interest rather than principal? d) What percentage of their first payment went to paying down the principal? e) How much interest does Pat end up paying over the entire term of the loan? Hint: Find the total payment amount. Subtract that from what they borrowed. f) Over the entire loan, what percentage of their payments went to interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Finance questions