At one point in time, every time you took out a mortgage, an amortization table
ID: 2726651 • Letter: A
Question
At one point in time, every time you took out a mortgage, an amortization table was provided to you detailing how much of each payment went towards the principal and how much went towards the interest as well as showing the remaining amount owed after each payment was made.
Suppose that you want to purchase a home for $185,000 using a down payment of $16,426 and you finance the rest of the purchase by taking out a 15-year mortgage at 5.4% interest compounded monthly.
Construct an amortization table for the entire length of the loan, making sure to include columns for the amount of each payment, the amount of each payment that goes towards the principal, the amount of each payment that goes towards the interest, and the amount still owed on the loan after the particular payment is made (note that you may want other columns in addition to these, but that will be dependent on your set up).
Explanation / Answer
Beginning Balance
Interest
Principal
Ending Balance
1
$168,574.00
$8,919.12
$7,502.40
$161,071.58
2
$161,071.58
$8,503.81
$7,917.71
$153,153.86
3
$153,153.86
$8,065.50
$8,356.02
$144,797.83
4
$144,797.83
$7,602.94
$8,818.58
$135,979.24
5
$135,979.24
$7,114.78
$9,306.74
$126,672.49
6
$126,672.49
$6,599.58
$9,821.94
$116,850.54
7
$116,850.54
$6,055.89
$10,365.63
$106,484.88
8
$106,484.88
$5,482.06
$10,939.46
$95,545.41
9
$95,545.41
$4,876.50
$11,545.02
$84,000.37
10
$84,000.37
$4,237.40
$12,184.12
$71,816.23
11
$71,816.23
$3,562.91
$12,858.61
$58,957.62
12
$58,957.62
$2,851.12
$13,570.40
$45,387.20
13
$45,387.20
$2,099.87
$14,321.65
$31,065.56
14
$31,065.56
$1,307.11
$15,114.41
$15,951.12
15
$15,951.12
$470.40
$15,951.12
$0.00
Beginning Balance
Interest
Principal
Ending Balance
1
$168,574.00
$8,919.12
$7,502.40
$161,071.58
2
$161,071.58
$8,503.81
$7,917.71
$153,153.86
3
$153,153.86
$8,065.50
$8,356.02
$144,797.83
4
$144,797.83
$7,602.94
$8,818.58
$135,979.24
5
$135,979.24
$7,114.78
$9,306.74
$126,672.49
6
$126,672.49
$6,599.58
$9,821.94
$116,850.54
7
$116,850.54
$6,055.89
$10,365.63
$106,484.88
8
$106,484.88
$5,482.06
$10,939.46
$95,545.41
9
$95,545.41
$4,876.50
$11,545.02
$84,000.37
10
$84,000.37
$4,237.40
$12,184.12
$71,816.23
11
$71,816.23
$3,562.91
$12,858.61
$58,957.62
12
$58,957.62
$2,851.12
$13,570.40
$45,387.20
13
$45,387.20
$2,099.87
$14,321.65
$31,065.56
14
$31,065.56
$1,307.11
$15,114.41
$15,951.12
15
$15,951.12
$470.40
$15,951.12
$0.00
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