Question
Lucy wants to buy a house. The house costs $700,000. She will make a 20% down payment. She will have a 30-year mortgage at an
Lucy wants to buy a house. The house costs $700,000. She will make a 20% down payment. She will have a 30-year mortgage at an interest rate of 6%. a) Make an amortization schedule for the first 6 payments (not years) of her loan. Make sure your amortization table has the following columns (in this order): beginning balance, payment (same each period), interest, principal reduction, and ending balance. Make sure you round to the nearest cent, not dollar! (Table 15.3 in your text as an example, except add a column for the payment.) b) Assuming she follows her amortization schedule, what will be the total interest she will pay for her home after 30 years? Show calculations.
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