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you plan to purchase a $100,000 house using a 30 year mortgage obtained from you

ID: 2733735 • Letter: Y

Question

you plan to purchase a $100,000 house using a 30 year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25%. You will make a down payment of 20% of the purchase price. A. calculate your monthly payments on this mortgage. B. Calculate the amount of interest and separately principal paid in the 25th payment. C. calculate the amount of interest and separately principal paid in the 225th payment D. Calculate the amount of interest paid over the life of the mortgage

Explanation / Answer

A. Monthly payments on this morgage is = 80000 x (8.25 x 30) / 360

= 601.01

B. Amount paid on 25th payment is Principal = 60.13 and interest is = 540.88

c. Amount paid on 25th payment is = Principal =236.70 and Interest = 364.31

d. total interest is = 136,364.78