Now do an Amortization Schedule

Bank A's offer is 15 years at 3.5% interest compounded monthly.

Determine your monthly payment. Write in a complete sentence. Fill in what you would put on the calculator to show work.

Calculator

APPS / Finance / TVM Solver

N = 180

I% = 3.5

PV = -1175000

PMT = Solve

FV = 0

P/Y = 12

C/Y = 12

PMT: end/begin

Alpha Solve

My monthly Payments would be $8,399.87

What is the total amount that you will pay?

Total amount paid = Monthly payment Total months

= $8,399.87 180

The total I would pay would be $1,511,976.60

What is the total interest you will pay? (Show work):

$1,511,976.60 - $1,175,000

The total interest I will pay would be $336,976.60