. J

Joh John plans to borrow $400,000 15 years mortgage loan from his bank, which agrees that John should repay the loan in 180 equal

end-of-month payments. The annual interest rate is 2.5% compounded monthly.

(1 (1) What is the amount of each monthly payment? Show your calculation.

(2) How much total interest dollar amount will John pay over the 15- year life of the loan?

Show your calculation

(3) Complete the following loan amortization schedule for the first 6 months and the last

month. Rounding amounts to the nearest dollar (18 points)

Month	Beginning Balance	Monthly Payment	Dollar Interest	Principal Payoff	Ending Balance
1	$400,000
2
3
4
5
6
180