QuestionDetails: You are buying a house for 250,000 a. If i make a down payment
ID: 2770721 • Letter: Q
Question
QuestionDetails: You are buying a house for 250,000 a. If i make a down payment of 50,000 and mortgage the rest at8.5% compounded monthly, what will be the monthly payment to retirethe mortgage on 15 years? b. Consider the 7th payment. How much will the interest andprincipal payments be?I HAVE THE ANSWER FOR PART a, PLEASE SHOW ME PART b!! THANKS. QuestionDetails: You are buying a house for 250,000 a. If i make a down payment of 50,000 and mortgage the rest at8.5% compounded monthly, what will be the monthly payment to retirethe mortgage on 15 years? b. Consider the 7th payment. How much will the interest andprincipal payments be?
Explanation / Answer
Payment
Beginning Balance
Monthly Payment
Interest Paid
Principal Paid
Ending Balance
1st
2nd
3rd
4th
5th
6th
7th
Present Value of your loan amount (PV) $250,000 Less: Down Payment $50,000 Present Value of Your loan Amount (PV) $200,000 Interest rate 8.5% (Compounded Monthly) Number of Payments (15 years * 12) 180 Payments (a) Calculating Monthly Payment Using Excel PMTfunction: Interest Rate (Rate) 8.5% / 12 Number of Payments (Nper) 15*12 = 180 Present Value of the Loan (PV) -$200,000 Payment (PMT) $1,969.48Related Questions
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