Question
ONLY ANSWER PART 2 j. Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must
ONLY ANSWER PART 2
j. Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that repays the principal and the amount that constitutes interest expense to the borrower and interest income to the lender.
(PART 2) Suppose the loan called for 10 years of monthly payments, 120 payments in all, with the same original amount and the same nominal interest rate. What would the amortization schedule show now?
Now we would have a 12 10 = 120-payment loan at a monthly rate of .08/12 = 0.666667%.
monthly payment would be: $606.64
(ONLY FILL IN CELLS 11-109)
| Month | Beg. Amt. | Pmt | Interest | Principal | End. Bal. |
| 1 | $50,000.00 | $606.64 | $333.33 | $273.30 | $49,726.70 |
| 2 | $49,726.70 | $606.64 | $331.51 | $275.13 | $49,451.57 |
| 3 | $49,451.57 | $606.64 | $329.68 | $276.96 | $49,174.61 |
| 4 | $49,174.61 | $606.64 | $327.83 | $278.81 | $48,895.80 |
| 5 | $48,895.80 | $606.64 | $325.97 | $280.67 | $48,615.13 |
| 6 | $48,615.13 | $606.64 | $324.10 | $282.54 | $48,332.60 |
| 7 | $48,332.60 | $606.64 | $322.22 | $284.42 | $48,048.18 |
| 8 | $48,048.18 | $606.64 | $320.32 | $286.32 | $47,761.86 |
| 9 | $47,761.86 | $606.64 | $318.41 | $288.23 | $47,473.63 |
| 10 | $47,473.63 | $606.64 | $316.49 | $290.15 | $47,183.49 |
| 11 | $606.64 | ||||
| 12 | $606.64 | ||||
| 13 | $606.64 | ||||
| 14 | $606.64 | ||||
| 15 | $606.64 | ||||
| 16 | $606.64 | ||||
| 17 | $606.64 | ||||
| 18 | $606.64 | ||||
| 19 | $606.64 | ||||
| 20 | $606.64 | ||||
| 21 | $606.64 | ||||
| 22 | $606.64 | ||||
| 23 | $606.64 | ||||
| 24 | $606.64 | ||||
| 25 | $606.64 | ||||
| 26 | $606.64 | ||||
| 27 | $606.64 | ||||
| 28 | $606.64 | ||||
| 29 | $606.64 | ||||
| 30 | $606.64 | ||||
| 31 | $606.64 | ||||
| 32 | $606.64 | ||||
| 33 | $606.64 | ||||
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| 35 | $606.64 | ||||
| 36 | $606.64 | ||||
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| 44 | $606.64 | ||||
| 45 | $606.64 | ||||
| 46 | $606.64 | ||||
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| 48 | $606.64 | ||||
| 49 | $606.64 | ||||
| 50 | $606.64 | ||||
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| 55 | $606.64 | ||||
| 56 | $606.64 | ||||
| 57 | $606.64 | ||||
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| 59 | $606.64 | ||||
| 60 | $606.64 | ||||
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| 64 | $606.64 | ||||
| 65 | $606.64 | ||||
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| 70 | $606.64 | ||||
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| 80 | $606.64 | ||||
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| 87 | $606.64 | ||||
| 88 | $606.64 | ||||
| 89 | $606.64 | ||||
| 90 | $606.64 | ||||
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| 92 | $606.64 | ||||
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| 95 | $606.64 | ||||
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| 100 | $606.64 | ||||
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| 106 | $606.64 | ||||
| 107 | $606.64 | ||||
| 108 | $606.64 | ||||
| 109 | $606.64 |
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Business Statistics Communicating With Numbers
Authors: Sanjiv Jaggia, Alison Kelly
2nd Edition
0078020557, 978-0078020551
