Question
Problems 5 - 12 relate to the following information: You are purchasing a house for $95,000. The lender requires a 10% down payment, and will
Problems 5 - 12 relate to the following information: You are purchasing a house for $95,000. The lender requires a 10% down payment, and will finance the rest with a 30 year fixed rate mortgage with monthly payments at 9 7/8% with two discount points charged. PLEASE USE FINACIAL CALCULLATOR AND SHOW THE WORK
5. Interest: How much interest is paid during the third year? [8315.4
6. Interest: How much interest is paid in the first month? [$703.59]
7. Interest: How much interest is paid in the 37th month? [$690.26]
8. Principal: How much principal is paid during the first month? [$38.84]
9. Principal: How much principal is paid during the 37th month? [$52.17]
10. Interest: How much interest is paid in the second year? [$8371.02]
11. Interest: How much interest is paid over the life of the loan if the loan is held to maturity? [$181,777.71]
12. Construct an annualized amortization schedule for the first four years of the loan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started