EM 35033513 Practice Problem Set#3-SU 16 WEEK#3 (1) [Compatibility Model . word
ID: 2393861 • Letter: E
Question
EM 35033513 Practice Problem Set#3-SU 16 WEEK#3 (1) [Compatibility Model . word MAILINGS REVIEW VIEW Foxit PDF Emphasis 1 Heading 1 1 Normal Strong Subtitle Title 1No Sp Paragraph Styles Additional Problem #1: pon graduation you've landed a good long term job with a major corporation. Your first investment is a house with a total financed cost of S150,000. Your interest rate for "first time home buyers" is an amazing 3.25%year, since the interest rate is so low, you decide to pay off the note in 30 years with 360 equal end of month payments. Answer the following questions: a). What are the monthly payments? b). What portion of the 120% payment is interest? e. What portion of the 120h payment is principal repayment? d). What is the remaining balance immediately after the 15h year (180h payment)? e). If you choose to payoff the loan at t-96, how much must you pay?Explanation / Answer
Solution a:
Loan amount = $150,000
Interest rate = 3.25%, monthly rate = 0.270833333%
Period = 30 years or 360 monthly periods
Monthly payments = $150,000 / Cumulative PV Factor at 0.270833333% for 360 periods
= $150,000 / 229.7761 = $652.81
Solution b:
Refer loan amortization schedule, interest amount in 120 th payment = $312.63
Solution c:
Refer loan amortization schedule, principal amount in 120 th payment = $652.81 - $312.63 = $340.18
Solution d:
Refer loan amortization schedule, Remaining loan amount after 15 years (180 th payment) = $92,904.18
Solution e:
Refer loan amortization schedule, if loan is to be repaid after 96th period then amount to be paid is equal to loan balance after 96th payment = $123,009.70
Loan Amortization Schedule Monthly Period Beginning balance Interest Monthly payment Ending balance 1 $150,000.00 $406.25 $652.81 $149,753.44 2 $149,753.44 $405.58 $652.81 $149,506.21 3 $149,506.21 $404.91 $652.81 $149,258.31 4 $149,258.31 $404.24 $652.81 $149,009.75 5 $149,009.75 $403.57 $652.81 $148,760.50 6 $148,760.50 $402.89 $652.81 $148,510.59 7 $148,510.59 $402.22 $652.81 $148,259.99 8 $148,259.99 $401.54 $652.81 $148,008.72 9 $148,008.72 $400.86 $652.81 $147,756.77 10 $147,756.77 $400.17 $652.81 $147,504.13 11 $147,504.13 $399.49 $652.81 $147,250.81 12 $147,250.81 $398.80 $652.81 $146,996.81 13 $146,996.81 $398.12 $652.81 $146,742.11 14 $146,742.11 $397.43 $652.81 $146,486.73 15 $146,486.73 $396.73 $652.81 $146,230.65 16 $146,230.65 $396.04 $652.81 $145,973.89 17 $145,973.89 $395.35 $652.81 $145,716.42 18 $145,716.42 $394.65 $652.81 $145,458.26 19 $145,458.26 $393.95 $652.81 $145,199.40 20 $145,199.40 $393.25 $652.81 $144,939.84 21 $144,939.84 $392.55 $652.81 $144,679.57 22 $144,679.57 $391.84 $652.81 $144,418.60 23 $144,418.60 $391.13 $652.81 $144,156.93 24 $144,156.93 $390.43 $652.81 $143,894.54 25 $143,894.54 $389.71 $652.81 $143,631.45 26 $143,631.45 $389.00 $652.81 $143,367.64 27 $143,367.64 $388.29 $652.81 $143,103.12 28 $143,103.12 $387.57 $652.81 $142,837.88 29 $142,837.88 $386.85 $652.81 $142,571.92 30 $142,571.92 $386.13 $652.81 $142,305.24 31 $142,305.24 $385.41 $652.81 $142,037.84 32 $142,037.84 $384.69 $652.81 $141,769.72 33 $141,769.72 $383.96 $652.81 $141,500.87 34 $141,500.87 $383.23 $652.81 $141,231.29 35 $141,231.29 $382.50 $652.81 $140,960.98 36 $140,960.98 $381.77 $652.81 $140,689.94 37 $140,689.94 $381.04 $652.81 $140,418.17 38 $140,418.17 $380.30 $652.81 $140,145.65 39 $140,145.65 $379.56 $652.81 $139,872.41 40 $139,872.41 $378.82 $652.81 $139,598.42 41 $139,598.42 $378.08 $652.81 $139,323.69 42 $139,323.69 $377.33 $652.81 $139,048.21 43 $139,048.21 $376.59 $652.81 $138,771.99 44 $138,771.99 $375.84 $652.81 $138,495.02 45 $138,495.02 $375.09 $652.81 $138,217.30 46 $138,217.30 $374.34 $652.81 $137,938.83 47 $137,938.83 $373.58 $652.81 $137,659.60 48 $137,659.60 $372.83 $652.81 $137,379.62 49 $137,379.62 $372.07 $652.81 $137,098.88 50 $137,098.88 $371.31 $652.81 $136,817.38 51 $136,817.38 $370.55 $652.81 $136,535.12 52 $136,535.12 $369.78 $652.81 $136,252.09 53 $136,252.09 $369.02 $652.81 $135,968.30 54 $135,968.30 $368.25 $652.81 $135,683.74 55 $135,683.74 $367.48 $652.81 $135,398.40 56 $135,398.40 $366.70 $652.81 $135,112.30 57 $135,112.30 $365.93 $652.81 $134,825.41 58 $134,825.41 $365.15 $652.81 $134,537.76 59 $134,537.76 $364.37 $652.81 $134,249.32 60 $134,249.32 $363.59 $652.81 $133,960.10 61 $133,960.10 $362.81 $652.81 $133,670.10 62 $133,670.10 $362.02 $652.81 $133,379.31 63 $133,379.31 $361.24 $652.81 $133,087.74 64 $133,087.74 $360.45 $652.81 $132,795.38 65 $132,795.38 $359.65 $652.81 $132,502.22 66 $132,502.22 $358.86 $652.81 $132,208.27 67 $132,208.27 $358.06 $652.81 $131,913.52 68 $131,913.52 $357.27 $652.81 $131,617.98 69 $131,617.98 $356.47 $652.81 $131,321.64 70 $131,321.64 $355.66 $652.81 $131,024.49 71 $131,024.49 $354.86 $652.81 $130,726.54 72 $130,726.54 $354.05 $652.81 $130,427.78 73 $130,427.78 $353.24 $652.81 $130,128.21 74 $130,128.21 $352.43 $652.81 $129,827.83 75 $129,827.83 $351.62 $652.81 $129,526.64 76 $129,526.64 $350.80 $652.81 $129,224.63 77 $129,224.63 $349.98 $652.81 $128,921.80 78 $128,921.80 $349.16 $652.81 $128,618.15 79 $128,618.15 $348.34 $652.81 $128,313.69 80 $128,313.69 $347.52 $652.81 $128,008.39 81 $128,008.39 $346.69 $652.81 $127,702.27 82 $127,702.27 $345.86 $652.81 $127,395.32 83 $127,395.32 $345.03 $652.81 $127,087.54 84 $127,087.54 $344.20 $652.81 $126,778.93 85 $126,778.93 $343.36 $652.81 $126,469.48 86 $126,469.48 $342.52 $652.81 $126,159.19 87 $126,159.19 $341.68 $652.81 $125,848.06 88 $125,848.06 $340.84 $652.81 $125,536.09 89 $125,536.09 $339.99 $652.81 $125,223.27 90 $125,223.27 $339.15 $652.81 $124,909.61 91 $124,909.61 $338.30 $652.81 $124,595.09 92 $124,595.09 $337.45 $652.81 $124,279.73 93 $124,279.73 $336.59 $652.81 $123,963.51 94 $123,963.51 $335.73 $652.81 $123,646.43 95 $123,646.43 $334.88 $652.81 $123,328.50 96 $123,328.50 $334.01 $652.81 $123,009.70 97 $123,009.70 $333.15 $652.81 $122,690.05 98 $122,690.05 $332.29 $652.81 $122,369.52 99 $122,369.52 $331.42 $652.81 $122,048.13 100 $122,048.13 $330.55 $652.81 $121,725.87 101 $121,725.87 $329.67 $652.81 $121,402.73 102 $121,402.73 $328.80 $652.81 $121,078.72 103 $121,078.72 $327.92 $652.81 $120,753.83 104 $120,753.83 $327.04 $652.81 $120,428.06 105 $120,428.06 $326.16 $652.81 $120,101.41 106 $120,101.41 $325.27 $652.81 $119,773.88 107 $119,773.88 $324.39 $652.81 $119,445.45 108 $119,445.45 $323.50 $652.81 $119,116.14 109 $119,116.14 $322.61 $652.81 $118,785.94 110 $118,785.94 $321.71 $652.81 $118,454.84 111 $118,454.84 $320.82 $652.81 $118,122.84 112 $118,122.84 $319.92 $652.81 $117,789.95 113 $117,789.95 $319.01 $652.81 $117,456.16 114 $117,456.16 $318.11 $652.81 $117,121.46 115 $117,121.46 $317.20 $652.81 $116,785.85 116 $116,785.85 $316.30 $652.81 $116,449.33 117 $116,449.33 $315.38 $652.81 $116,111.91 118 $116,111.91 $314.47 $652.81 $115,773.57 119 $115,773.57 $313.55 $652.81 $115,434.31 120 $115,434.31 $312.63 $652.81 $115,094.14 121 $115,094.14 $311.71 $652.81 $114,753.04 122 $114,753.04 $310.79 $652.81 $114,411.02 123 $114,411.02 $309.86 $652.81 $114,068.07 124 $114,068.07 $308.93 $652.81 $113,724.20 125 $113,724.20 $308.00 $652.81 $113,379.39 126 $113,379.39 $307.07 $652.81 $113,033.65 127 $113,033.65 $306.13 $652.81 $112,686.97 128 $112,686.97 $305.19 $652.81 $112,339.35 129 $112,339.35 $304.25 $652.81 $111,990.80 130 $111,990.80 $303.31 $652.81 $111,641.30 131 $111,641.30 $302.36 $652.81 $111,290.85 132 $111,290.85 $301.41 $652.81 $110,939.45 133 $110,939.45 $300.46 $652.81 $110,587.10 134 $110,587.10 $299.51 $652.81 $110,233.80 135 $110,233.80 $298.55 $652.81 $109,879.54 136 $109,879.54 $297.59 $652.81 $109,524.32 137 $109,524.32 $296.63 $652.81 $109,168.14 138 $109,168.14 $295.66 $652.81 $108,810.99 139 $108,810.99 $294.70 $652.81 $108,452.88 140 $108,452.88 $293.73 $652.81 $108,093.79 141 $108,093.79 $292.75 $652.81 $107,733.74 142 $107,733.74 $291.78 $652.81 $107,372.71 143 $107,372.71 $290.80 $652.81 $107,010.70 144 $107,010.70 $289.82 $652.81 $106,647.71 145 $106,647.71 $288.84 $652.81 $106,283.74 146 $106,283.74 $287.85 $652.81 $105,918.78 147 $105,918.78 $286.86 $652.81 $105,552.83 148 $105,552.83 $285.87 $652.81 $105,185.89 149 $105,185.89 $284.88 $652.81 $104,817.96 150 $104,817.96 $283.88 $652.81 $104,449.03 151 $104,449.03 $282.88 $652.81 $104,079.11 152 $104,079.11 $281.88 $652.81 $103,708.18 153 $103,708.18 $280.88 $652.81 $103,336.24 154 $103,336.24 $279.87 $652.81 $102,963.30 155 $102,963.30 $278.86 $652.81 $102,589.35 156 $102,589.35 $277.85 $652.81 $102,214.39 157 $102,214.39 $276.83 $652.81 $101,838.41 158 $101,838.41 $275.81 $652.81 $101,461.41 159 $101,461.41 $274.79 $652.81 $101,083.39 160 $101,083.39 $273.77 $652.81 $100,704.35 161 $100,704.35 $272.74 $652.81 $100,324.28 162 $100,324.28 $271.71 $652.81 $99,943.18 163 $99,943.18 $270.68 $652.81 $99,561.05 164 $99,561.05 $269.64 $652.81 $99,177.89 165 $99,177.89 $268.61 $652.81 $98,793.68 166 $98,793.68 $267.57 $652.81 $98,408.44 167 $98,408.44 $266.52 $652.81 $98,022.15 168 $98,022.15 $265.48 $652.81 $97,634.82 169 $97,634.82 $264.43 $652.81 $97,246.44 170 $97,246.44 $263.38 $652.81 $96,857.00 171 $96,857.00 $262.32 $652.81 $96,466.51 172 $96,466.51 $261.26 $652.81 $96,074.97 173 $96,074.97 $260.20 $652.81 $95,682.36 174 $95,682.36 $259.14 $652.81 $95,288.69 175 $95,288.69 $258.07 $652.81 $94,893.95 176 $94,893.95 $257.00 $652.81 $94,498.15 177 $94,498.15 $255.93 $652.81 $94,101.27 178 $94,101.27 $254.86 $652.81 $93,703.32 179 $93,703.32 $253.78 $652.81 $93,304.29 180 $93,304.29 $252.70 $652.81 $92,904.18 181 $92,904.18 $251.62 $652.81 $92,502.98 182 $92,502.98 $250.53 $652.81 $92,100.70 183 $92,100.70 $249.44 $652.81 $91,697.33 184 $91,697.33 $248.35 $652.81 $91,292.87 185 $91,292.87 $247.25 $652.81 $90,887.31 186 $90,887.31 $246.15 $652.81 $90,480.65 187 $90,480.65 $245.05 $652.81 $90,072.89 188 $90,072.89 $243.95 $652.81 $89,664.03 189 $89,664.03 $242.84 $652.81 $89,254.06 190 $89,254.06 $241.73 $652.81 $88,842.98 191 $88,842.98 $240.62 $652.81 $88,430.79 192 $88,430.79 $239.50 $652.81 $88,017.48 193 $88,017.48 $238.38 $652.81 $87,603.05 194 $87,603.05 $237.26 $652.81 $87,187.50 195 $87,187.50 $236.13 $652.81 $86,770.82 196 $86,770.82 $235.00 $652.81 $86,353.01 197 $86,353.01 $233.87 $652.81 $85,934.08 198 $85,934.08 $232.74 $652.81 $85,514.00 199 $85,514.00 $231.60 $652.81 $85,092.79 200 $85,092.79 $230.46 $652.81 $84,670.44 201 $84,670.44 $229.32 $652.81 $84,246.95 202 $84,246.95 $228.17 $652.81 $83,822.31 203 $83,822.31 $227.02 $652.81 $83,396.52 204 $83,396.52 $225.87 $652.81 $82,969.57 205 $82,969.57 $224.71 $652.81 $82,541.47 206 $82,541.47 $223.55 $652.81 $82,112.21 207 $82,112.21 $222.39 $652.81 $81,681.79 208 $81,681.79 $221.22 $652.81 $81,250.20 209 $81,250.20 $220.05 $652.81 $80,817.44 210 $80,817.44 $218.88 $652.81 $80,383.51 211 $80,383.51 $217.71 $652.81 $79,948.41 212 $79,948.41 $216.53 $652.81 $79,512.13 213 $79,512.13 $215.35 $652.81 $79,074.66 214 $79,074.66 $214.16 $652.81 $78,636.01 215 $78,636.01 $212.97 $652.81 $78,196.17 216 $78,196.17 $211.78 $652.81 $77,755.15 217 $77,755.15 $210.59 $652.81 $77,312.92 218 $77,312.92 $209.39 $652.81 $76,869.50 219 $76,869.50 $208.19 $652.81 $76,424.88 220 $76,424.88 $206.98 $652.81 $75,979.05 221 $75,979.05 $205.78 $652.81 $75,532.02 222 $75,532.02 $204.57 $652.81 $75,083.78 223 $75,083.78 $203.35 $652.81 $74,634.32 224 $74,634.32 $202.13 $652.81 $74,183.64 225 $74,183.64 $200.91 $652.81 $73,731.75 226 $73,731.75 $199.69 $652.81 $73,278.63 227 $73,278.63 $198.46 $652.81 $72,824.28 228 $72,824.28 $197.23 $652.81 $72,368.70 229 $72,368.70 $196.00 $652.81 $71,911.89 230 $71,911.89 $194.76 $652.81 $71,453.84 231 $71,453.84 $193.52 $652.81 $70,994.55 232 $70,994.55 $192.28 $652.81 $70,534.02 233 $70,534.02 $191.03 $652.81 $70,072.24 234 $70,072.24 $189.78 $652.81 $69,609.21 235 $69,609.21 $188.52 $652.81 $69,144.92 236 $69,144.92 $187.27 $652.81 $68,679.38 237 $68,679.38 $186.01 $652.81 $68,212.58 238 $68,212.58 $184.74 $652.81 $67,744.51 239 $67,744.51 $183.47 $652.81 $67,275.18 240 $67,275.18 $182.20 $652.81 $66,804.57 241 $66,804.57 $180.93 $652.81 $66,332.69 242 $66,332.69 $179.65 $652.81 $65,859.53 243 $65,859.53 $178.37 $652.81 $65,385.09 244 $65,385.09 $177.08 $652.81 $64,909.36 245 $64,909.36 $175.80 $652.81 $64,432.35 246 $64,432.35 $174.50 $652.81 $63,954.04 247 $63,954.04 $173.21 $652.81 $63,474.44 248 $63,474.44 $171.91 $652.81 $62,993.54 249 $62,993.54 $170.61 $652.81 $62,511.34 250 $62,511.34 $169.30 $652.81 $62,027.83 251 $62,027.83 $167.99 $652.81 $61,543.01 252 $61,543.01 $166.68 $652.81 $61,056.88 253 $61,056.88 $165.36 $652.81 $60,569.43 254 $60,569.43 $164.04 $652.81 $60,080.67 255 $60,080.67 $162.72 $652.81 $59,590.58 256 $59,590.58 $161.39 $652.81 $59,099.16 257 $59,099.16 $160.06 $652.81 $58,606.41 258 $58,606.41 $158.73 $652.81 $58,112.32 259 $58,112.32 $157.39 $652.81 $57,616.90 260 $57,616.90 $156.05 $652.81 $57,120.14 261 $57,120.14 $154.70 $652.81 $56,622.03 262 $56,622.03 $153.35 $652.81 $56,122.57 263 $56,122.57 $152.00 $652.81 $55,621.76 264 $55,621.76 $150.64 $652.81 $55,119.59 265 $55,119.59 $149.28 $652.81 $54,616.06 266 $54,616.06 $147.92 $652.81 $54,111.17 267 $54,111.17 $146.55 $652.81 $53,604.91 268 $53,604.91 $145.18 $652.81 $53,097.28 269 $53,097.28 $143.81 $652.81 $52,588.28 270 $52,588.28 $142.43 $652.81 $52,077.89 271 $52,077.89 $141.04 $652.81 $51,566.13 272 $51,566.13 $139.66 $652.81 $51,052.97 273 $51,052.97 $138.27 $652.81 $50,538.43 274 $50,538.43 $136.87 $652.81 $50,022.50 275 $50,022.50 $135.48 $652.81 $49,505.17 276 $49,505.17 $134.08 $652.81 $48,986.43 277 $48,986.43 $132.67 $652.81 $48,466.29 278 $48,466.29 $131.26 $652.81 $47,944.75 279 $47,944.75 $129.85 $652.81 $47,421.79 280 $47,421.79 $128.43 $652.81 $46,897.41 281 $46,897.41 $127.01 $652.81 $46,371.61 282 $46,371.61 $125.59 $652.81 $45,844.39 283 $45,844.39 $124.16 $652.81 $45,315.75 284 $45,315.75 $122.73 $652.81 $44,785.67 285 $44,785.67 $121.29 $652.81 $44,254.15 286 $44,254.15 $119.85 $652.81 $43,721.20 287 $43,721.20 $118.41 $652.81 $43,186.80 288 $43,186.80 $116.96 $652.81 $42,650.95 289 $42,650.95 $115.51 $652.81 $42,113.65 290 $42,113.65 $114.06 $652.81 $41,574.90 291 $41,574.90 $112.60 $652.81 $41,034.69 292 $41,034.69 $111.14 $652.81 $40,493.02 293 $40,493.02 $109.67 $652.81 $39,949.88 294 $39,949.88 $108.20 $652.81 $39,405.26 295 $39,405.26 $106.72 $652.81 $38,859.18 296 $38,859.18 $105.24 $652.81 $38,311.61 297 $38,311.61 $103.76 $652.81 $37,762.56 298 $37,762.56 $102.27 $652.81 $37,212.02 299 $37,212.02 $100.78 $652.81 $36,660.00 300 $36,660.00 $99.29 $652.81 $36,106.47 301 $36,106.47 $97.79 $652.81 $35,551.45 302 $35,551.45 $96.29 $652.81 $34,994.93 303 $34,994.93 $94.78 $652.81 $34,436.89 304 $34,436.89 $93.27 $652.81 $33,877.35 305 $33,877.35 $91.75 $652.81 $33,316.29 306 $33,316.29 $90.23 $652.81 $32,753.71 307 $32,753.71 $88.71 $652.81 $32,189.61 308 $32,189.61 $87.18 $652.81 $31,623.98 309 $31,623.98 $85.65 $652.81 $31,056.82 310 $31,056.82 $84.11 $652.81 $30,488.12 311 $30,488.12 $82.57 $652.81 $29,917.89 312 $29,917.89 $81.03 $652.81 $29,346.10 313 $29,346.10 $79.48 $652.81 $28,772.77 314 $28,772.77 $77.93 $652.81 $28,197.89 315 $28,197.89 $76.37 $652.81 $27,621.45 316 $27,621.45 $74.81 $652.81 $27,043.45 317 $27,043.45 $73.24 $652.81 $26,463.88 318 $26,463.88 $71.67 $652.81 $25,882.74 319 $25,882.74 $70.10 $652.81 $25,300.03 320 $25,300.03 $68.52 $652.81 $24,715.74 321 $24,715.74 $66.94 $652.81 $24,129.87 322 $24,129.87 $65.35 $652.81 $23,542.41 323 $23,542.41 $63.76 $652.81 $22,953.36 324 $22,953.36 $62.17 $652.81 $22,362.72 325 $22,362.72 $60.57 $652.81 $21,770.47 326 $21,770.47 $58.96 $652.81 $21,176.62 327 $21,176.62 $57.35 $652.81 $20,581.17 328 $20,581.17 $55.74 $652.81 $19,984.10 329 $19,984.10 $54.12 $652.81 $19,385.41 330 $19,385.41 $52.50 $652.81 $18,785.10 331 $18,785.10 $50.88 $652.81 $18,183.17 332 $18,183.17 $49.25 $652.81 $17,579.61 333 $17,579.61 $47.61 $652.81 $16,974.41 334 $16,974.41 $45.97 $652.81 $16,367.57 335 $16,367.57 $44.33 $652.81 $15,759.09 336 $15,759.09 $42.68 $652.81 $15,148.96 337 $15,148.96 $41.03 $652.81 $14,537.18 338 $14,537.18 $39.37 $652.81 $13,923.74 339 $13,923.74 $37.71 $652.81 $13,308.64 340 $13,308.64 $36.04 $652.81 $12,691.87 341 $12,691.87 $34.37 $652.81 $12,073.44 342 $12,073.44 $32.70 $652.81 $11,453.33 343 $11,453.33 $31.02 $652.81 $10,831.54 344 $10,831.54 $29.34 $652.81 $10,208.06 345 $10,208.06 $27.65 $652.81 $9,582.90 346 $9,582.90 $25.95 $652.81 $8,956.04 347 $8,956.04 $24.26 $652.81 $8,327.49 348 $8,327.49 $22.55 $652.81 $7,697.23 349 $7,697.23 $20.85 $652.81 $7,065.27 350 $7,065.27 $19.14 $652.81 $6,431.59 351 $6,431.59 $17.42 $652.81 $5,796.20 352 $5,796.20 $15.70 $652.81 $5,159.09 353 $5,159.09 $13.97 $652.81 $4,520.25 354 $4,520.25 $12.24 $652.81 $3,879.69 355 $3,879.69 $10.51 $652.81 $3,237.38 356 $3,237.38 $8.77 $652.81 $2,593.34 357 $2,593.34 $7.02 $652.81 $1,947.55 358 $1,947.55 $5.27 $652.81 $1,300.02 359 $1,300.02 $3.52 $652.81 $650.73 360 $650.73 $2.08 $652.81 $0.00Related Questions
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