You just took out a 15-year traditional fixed-rate mortgage for $200,000 to buy a house. The interest rate is 6% (APR) and you have to make payments monthly. Find part 2&4 for the following.

Intro You just took out a 15-year traditional fixed-rate mortgage for $200,000 to buy a house. The interest rate is 6% (APR) and you have to make payments monthly. | Attempt 1/6 for 10 pts. Part 1 What is your monthly payment? 1687.71 Correct Since it's a traditional fixed-rate mortgage, the cash flows are constant and make up an annuity. We can thus use the annuity formula, solved for PMT. 0.06 = Monthly interest rate: R= 0.005 12 Number of months: N - 15 12 = 180 1 - (1+R)" PV = PMT R 1 # PMT PV .R 1 N (1+R) 200,000 0.005 1 1 - = 1,687.71 1 (1+0.005) 1 Part 2 | Attempt 2/6 for 10 pts. How much of your first monthly payment goes towards paying down the outstanding balance (in $)? b+decimals Previous answers: 1000 Submit Part 3 | Attempt 1/6 for 10 pts. What is the outstanding balance after 1 year if you have made all 12 payments on time? 191516.27 Correct The outstanding balance after one year is the present value of all future cash flows over the next 14 years: Number of months: N = 14. 12 = 168 1 1 - PV = PMT (1+r)^ R ( (- 1 1,687.71 0.005 168 (1 + 0.005) = 191,517 Part 4 | Attempt 2/6 for 10 pts. How much of your 13th monthly payment goes towards paying down the outstanding balance (in $)? 0+ decimals Previous answers: 957.58 Submit