You plan to purchase an $100,000 house using a 30-year mortgage obtained from yo

Question

You plan to purchase an $100,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 5 percent. You will make a down payment of 10 percent of the purchase price.

a. Calculate your monthly payments on this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Monthly payment $

b. Calculate the amount of interest and, separately, principal paid in the 250th payment. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Amount of interest $ Amount of principal $

c. Calculate the amount of interest and, separately, principal paid in the 225th payment. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Amount of interest $ Amount of principal $

d. Calculate the amount of interest paid over the life of this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Amount of interest paid $

Explanation / Answer

loan amount = 100000 * 0.9 = 90000

present value of annuity = payment per period * [ 1 - (1+i)^-n ]/i

a)

present value = 90000

=>

x * [1-(1+5%/12)^-360]/5%/12 = 90000

monthly payment x = 483.14

b)

amount of interest = 178.61

principal = 304.53

c)

interest = 208.68

principal = 274.46

d)

total amount = 483.14 * 30 * 12 = 173930.4

total interest paid =  173930.4 - 90000 = 83930.4

Beginning Balance Interest Principal Ending Balance 1 $90,000.00 $375.00 $108.14 $89,891.86 2 $89,891.86 $374.55 $108.59 $89,783.27 3 $89,783.27 $374.10 $109.04 $89,674.23 4 $89,674.23 $373.64 $109.50 $89,564.73 5 $89,564.73 $373.19 $109.95 $89,454.78 6 $89,454.78 $372.73 $110.41 $89,344.37 7 $89,344.37 $372.27 $110.87 $89,233.50 8 $89,233.50 $371.81 $111.33 $89,122.16 9 $89,122.16 $371.34 $111.80 $89,010.37 10 $89,010.37 $370.88 $112.26 $88,898.10 11 $88,898.10 $370.41 $112.73 $88,785.37 12 $88,785.37 $369.94 $113.20 $88,672.17 year 1 end 13 $88,672.17 $369.47 $113.67 $88,558.50 14 $88,558.50 $368.99 $114.15 $88,444.35 15 $88,444.35 $368.52 $114.62 $88,329.73 16 $88,329.73 $368.04 $115.10 $88,214.63 17 $88,214.63 $367.56 $115.58 $88,099.05 18 $88,099.05 $367.08 $116.06 $87,982.99 19 $87,982.99 $366.60 $116.54 $87,866.45 20 $87,866.45 $366.11 $117.03 $87,749.42 21 $87,749.42 $365.62 $117.52 $87,631.90 22 $87,631.90 $365.13 $118.01 $87,513.90 23 $87,513.90 $364.64 $118.50 $87,395.40 24 $87,395.40 $364.15 $118.99 $87,276.41 year 2 end 25 $87,276.41 $363.65 $119.49 $87,156.92 26 $87,156.92 $363.15 $119.99 $87,036.93 27 $87,036.93 $362.65 $120.49 $86,916.45 28 $86,916.45 $362.15 $120.99 $86,795.46 29 $86,795.46 $361.65 $121.49 $86,673.97 30 $86,673.97 $361.14 $122.00 $86,551.97 31 $86,551.97 $360.63 $122.51 $86,429.47 32 $86,429.47 $360.12 $123.02 $86,306.45 33 $86,306.45 $359.61 $123.53 $86,182.92 34 $86,182.92 $359.10 $124.04 $86,058.88 35 $86,058.88 $358.58 $124.56 $85,934.32 36 $85,934.32 $358.06 $125.08 $85,809.24 year 3 end 37 $85,809.24 $357.54 $125.60 $85,683.63 38 $85,683.63 $357.02 $126.12 $85,557.51 39 $85,557.51 $356.49 $126.65 $85,430.86 40 $85,430.86 $355.96 $127.18 $85,303.68 41 $85,303.68 $355.43 $127.71 $85,175.98 42 $85,175.98 $354.90 $128.24 $85,047.74 43 $85,047.74 $354.37 $128.77 $84,918.96 44 $84,918.96 $353.83 $129.31 $84,789.65 45 $84,789.65 $353.29 $129.85 $84,659.80 46 $84,659.80 $352.75 $130.39 $84,529.41 47 $84,529.41 $352.21 $130.93 $84,398.48 48 $84,398.48 $351.66 $131.48 $84,267.00 year 4 end 49 $84,267.00 $351.11 $132.03 $84,134.97 50 $84,134.97 $350.56 $132.58 $84,002.39 51 $84,002.39 $350.01 $133.13 $83,869.27 52 $83,869.27 $349.46 $133.68 $83,735.58 53 $83,735.58 $348.90 $134.24 $83,601.34 54 $83,601.34 $348.34 $134.80 $83,466.54 55 $83,466.54 $347.78 $135.36 $83,331.18 56 $83,331.18 $347.21 $135.93 $83,195.25 57 $83,195.25 $346.65 $136.49 $83,058.76 58 $83,058.76 $346.08 $137.06 $82,921.70 59 $82,921.70 $345.51 $137.63 $82,784.06 60 $82,784.06 $344.93 $138.21 $82,645.86 year 5 end 61 $82,645.86 $344.36 $138.78 $82,507.08 62 $82,507.08 $343.78 $139.36 $82,367.72 63 $82,367.72 $343.20 $139.94 $82,227.78 64 $82,227.78 $342.62 $140.52 $82,087.25 65 $82,087.25 $342.03 $141.11 $81,946.14 66 $81,946.14 $341.44 $141.70 $81,804.45 67 $81,804.45 $340.85 $142.29 $81,662.16 68 $81,662.16 $340.26 $142.88 $81,519.28 69 $81,519.28 $339.66 $143.48 $81,375.80 70 $81,375.80 $339.07 $144.07 $81,231.73 71 $81,231.73 $338.47 $144.67 $81,087.05 72 $81,087.05 $337.86 $145.28 $80,941.78 year 6 end 73 $80,941.78 $337.26 $145.88 $80,795.90 74 $80,795.90 $336.65 $146.49 $80,649.41 75 $80,649.41 $336.04 $147.10 $80,502.31 76 $80,502.31 $335.43 $147.71 $80,354.59 77 $80,354.59 $334.81 $148.33 $80,206.26 78 $80,206.26 $334.19 $148.95 $80,057.32 79 $80,057.32 $333.57 $149.57 $79,907.75 80 $79,907.75 $332.95 $150.19 $79,757.56 81 $79,757.56 $332.32 $150.82 $79,606.74 82 $79,606.74 $331.69 $151.45 $79,455.30 83 $79,455.30 $331.06 $152.08 $79,303.22 84 $79,303.22 $330.43 $152.71 $79,150.51 year 7 end 85 $79,150.51 $329.79 $153.35 $78,997.17 86 $78,997.17 $329.15 $153.99 $78,843.18 87 $78,843.18 $328.51 $154.63 $78,688.56 88 $78,688.56 $327.87 $155.27 $78,533.29 89 $78,533.29 $327.22 $155.92 $78,377.37 90 $78,377.37 $326.57 $156.57 $78,220.80 91 $78,220.80 $325.92 $157.22 $78,063.58 92 $78,063.58 $325.26 $157.88 $77,905.71 93 $77,905.71 $324.61 $158.53 $77,747.18 94 $77,747.18 $323.95 $159.19 $77,587.98 95 $77,587.98 $323.28 $159.86 $77,428.13 96 $77,428.13 $322.62 $160.52 $77,267.60 year 8 end 97 $77,267.60 $321.95 $161.19 $77,106.41 98 $77,106.41 $321.28 $161.86 $76,944.55 99 $76,944.55 $320.60 $162.54 $76,782.01 100 $76,782.01 $319.93 $163.21 $76,618.80 101 $76,618.80 $319.24 $163.90 $76,454.90 102 $76,454.90 $318.56 $164.58 $76,290.33 103 $76,290.33 $317.88 $165.26 $76,125.06 104 $76,125.06 $317.19 $165.95 $75,959.11 105 $75,959.11 $316.50 $166.64 $75,792.47 106 $75,792.47 $315.80 $167.34 $75,625.13 107 $75,625.13 $315.10 $168.04 $75,457.10 108 $75,457.10 $314.40 $168.74 $75,288.36 year 9 end 109 $75,288.36 $313.70 $169.44 $75,118.92 110 $75,118.92 $313.00 $170.14 $74,948.78 111 $74,948.78 $312.29 $170.85 $74,777.93 112 $74,777.93 $311.57 $171.57 $74,606.36 113 $74,606.36 $310.86 $172.28 $74,434.08 114 $74,434.08 $310.14 $173.00 $74,261.09 115 $74,261.09 $309.42 $173.72 $74,087.37 116 $74,087.37 $308.70 $174.44 $73,912.93 117 $73,912.93 $307.97 $175.17 $73,737.76 118 $73,737.76 $307.24 $175.90 $73,561.86 119 $73,561.86 $306.51 $176.63 $73,385.23 120 $73,385.23 $305.77 $177.37 $73,207.86 year 10 end 121 $73,207.86 $305.03 $178.11 $73,029.75 122 $73,029.75 $304.29 $178.85 $72,850.90 123 $72,850.90 $303.55 $179.59 $72,671.31 124 $72,671.31 $302.80 $180.34 $72,490.97 125 $72,490.97 $302.05 $181.09 $72,309.87 126 $72,309.87 $301.29 $181.85 $72,128.02 127 $72,128.02 $300.53 $182.61 $71,945.42 128 $71,945.42 $299.77 $183.37 $71,762.05 129 $71,762.05 $299.01 $184.13 $71,577.92 130 $71,577.92 $298.24 $184.90 $71,393.02 131 $71,393.02 $297.47 $185.67 $71,207.35 132 $71,207.35 $296.70 $186.44 $71,020.91 year 11 end 133 $71,020.91 $295.92 $187.22 $70,833.69 134 $70,833.69 $295.14 $188.00 $70,645.69 135 $70,645.69 $294.36 $188.78 $70,456.91 136 $70,456.91 $293.57 $189.57 $70,267.34 137 $70,267.34 $292.78 $190.36 $70,076.98 138 $70,076.98 $291.99 $191.15 $69,885.83 139 $69,885.83 $291.19 $191.95 $69,693.88 140 $69,693.88 $290.39 $192.75 $69,501.13 141 $69,501.13 $289.59 $193.55 $69,307.58 142 $69,307.58 $288.78 $194.36 $69,113.22 143 $69,113.22 $287.97 $195.17 $68,918.06 144 $68,918.06 $287.16 $195.98 $68,722.08 year 12 end 145 $68,722.08 $286.34 $196.80 $68,525.28 146 $68,525.28 $285.52 $197.62 $68,327.66 147 $68,327.66 $284.70 $198.44 $68,129.22 148 $68,129.22 $283.87 $199.27 $67,929.95 149 $67,929.95 $283.04 $200.10 $67,729.85 150 $67,729.85 $282.21 $200.93 $67,528.92 151 $67,528.92 $281.37 $201.77 $67,327.15 152 $67,327.15 $280.53 $202.61 $67,124.54 153 $67,124.54 $279.69 $203.45 $66,921.09 154 $66,921.09 $278.84 $204.30 $66,716.79 155 $66,716.79 $277.99 $205.15 $66,511.64 156 $66,511.64 $277.13 $206.01 $66,305.63 year 13 end 157 $66,305.63 $276.27 $206.87 $66,098.76 158 $66,098.76 $275.41 $207.73 $65,891.03 159 $65,891.03 $274.55 $208.59 $65,682.44 160 $65,682.44 $273.68 $209.46 $65,472.98 161 $65,472.98 $272.80 $210.34 $65,262.64 162 $65,262.64 $271.93 $211.21 $65,051.43 163 $65,051.43 $271.05 $212.09 $64,839.34 164 $64,839.34 $270.16 $212.98 $64,626.36 165 $64,626.36 $269.28 $213.86 $64,412.50 166 $64,412.50 $268.39 $214.75 $64,197.75 167 $64,197.75 $267.49 $215.65 $63,982.10 168 $63,982.10 $266.59 $216.55 $63,765.55 year 14 end 169 $63,765.55 $265.69 $217.45 $63,548.10 170 $63,548.10 $264.78 $218.36 $63,329.75 171 $63,329.75 $263.87 $219.27 $63,110.48 172 $63,110.48 $262.96 $220.18 $62,890.30 173 $62,890.30 $262.04 $221.10 $62,669.20 174 $62,669.20 $261.12 $222.02 $62,447.19 175 $62,447.19 $260.20 $222.94 $62,224.24 176 $62,224.24 $259.27 $223.87 $62,000.37 177 $62,000.37 $258.33 $224.81 $61,775.57 178 $61,775.57 $257.40 $225.74 $61,549.83 179 $61,549.83 $256.46 $226.68 $61,323.14 180 $61,323.14 $255.51 $227.63 $61,095.52 year 15 end 181 $61,095.52 $254.56 $228.58 $60,866.94 182 $60,866.94 $253.61 $229.53 $60,637.42 183 $60,637.42 $252.66 $230.48 $60,406.93 184 $60,406.93 $251.70 $231.44 $60,175.49 185 $60,175.49 $250.73 $232.41 $59,943.08 186 $59,943.08 $249.76 $233.38 $59,709.70 187 $59,709.70 $248.79 $234.35 $59,475.35 188 $59,475.35 $247.81 $235.33 $59,240.03 189 $59,240.03 $246.83 $236.31 $59,003.72 190 $59,003.72 $245.85 $237.29 $58,766.43 191 $58,766.43 $244.86 $238.28 $58,528.15 192 $58,528.15 $243.87 $239.27 $58,288.88 year 16 end 193 $58,288.88 $242.87 $240.27 $58,048.61 194 $58,048.61 $241.87 $241.27 $57,807.34 195 $57,807.34 $240.86 $242.28 $57,565.07 196 $57,565.07 $239.85 $243.29 $57,321.78 197 $57,321.78 $238.84 $244.30 $57,077.48 198 $57,077.48 $237.82 $245.32 $56,832.17 199 $56,832.17 $236.80 $246.34 $56,585.83 200 $56,585.83 $235.77 $247.37 $56,338.46 201 $56,338.46 $234.74 $248.40 $56,090.07 202 $56,090.07 $233.71 $249.43 $55,840.63 203 $55,840.63 $232.67 $250.47 $55,590.16 204 $55,590.16 $231.63 $251.51 $55,338.65 year 17 end 205 $55,338.65 $230.58 $252.56 $55,086.09 206 $55,086.09 $229.53 $253.61 $54,832.48 207 $54,832.48 $228.47 $254.67 $54,577.80 208 $54,577.80 $227.41 $255.73 $54,322.07 209 $54,322.07 $226.34 $256.80 $54,065.27 210 $54,065.27 $225.27 $257.87 $53,807.41 211 $53,807.41 $224.20 $258.94 $53,548.47 212 $53,548.47 $223.12 $260.02 $53,288.44 213 $53,288.44 $222.04 $261.10 $53,027.34 214 $53,027.34 $220.95 $262.19 $52,765.15 215 $52,765.15 $219.85 $263.29 $52,501.86 216 $52,501.86 $218.76 $264.38 $52,237.48 year 18 end 217 $52,237.48 $217.66 $265.48 $51,972.00 218 $51,972.00 $216.55 $266.59 $51,705.41 219 $51,705.41 $215.44 $267.70 $51,437.71 220 $51,437.71 $214.32 $268.82 $51,168.89 221 $51,168.89 $213.20 $269.94 $50,898.96 222 $50,898.96 $212.08 $271.06 $50,627.90 223 $50,627.90 $210.95 $272.19 $50,355.71 224 $50,355.71 $209.82 $273.32 $50,082.38 225 $50,082.38 $208.68 $274.46 $49,807.92 226 $49,807.92 $207.53 $275.61 $49,532.31 227 $49,532.31 $206.38 $276.76 $49,255.56 228 $49,255.56 $205.23 $277.91 $48,977.65 year 19 end 229 $48,977.65 $204.07 $279.07 $48,698.58 230 $48,698.58 $202.91 $280.23 $48,418.36 231 $48,418.36 $201.74 $281.40 $48,136.96 232 $48,136.96 $200.57 $282.57 $47,854.39 233 $47,854.39 $199.39 $283.75 $47,570.64 234 $47,570.64 $198.21 $284.93 $47,285.72 235 $47,285.72 $197.02 $286.12 $46,999.60 236 $46,999.60 $195.83 $287.31 $46,712.29 237 $46,712.29 $194.63 $288.51 $46,423.79 238 $46,423.79 $193.43 $289.71 $46,134.08 239 $46,134.08 $192.23 $290.91 $45,843.17 240 $45,843.17 $191.01 $292.13 $45,551.04 year 20 end 241 $45,551.04 $189.80 $293.34 $45,257.70 242 $45,257.70 $188.57 $294.57 $44,963.13 243 $44,963.13 $187.35 $295.79 $44,667.34 244 $44,667.34 $186.11 $297.03 $44,370.31 245 $44,370.31 $184.88 $298.26 $44,072.05 246 $44,072.05 $183.63 $299.51 $43,772.54 247 $43,772.54 $182.39 $300.75 $43,471.79 248 $43,471.79 $181.13 $302.01 $43,169.78 249 $43,169.78 $179.87 $303.27 $42,866.52 250 $42,866.52 $178.61 $304.53 $42,561.99 251 $42,561.99 $177.34 $305.80 $42,256.19 252 $42,256.19 $176.07 $307.07 $41,949.12 year 21 end 253 $41,949.12 $174.79 $308.35 $41,640.77 254 $41,640.77 $173.50 $309.64 $41,331.13 255 $41,331.13 $172.21 $310.93 $41,020.20 256 $41,020.20 $170.92 $312.22 $40,707.98 257 $40,707.98 $169.62 $313.52 $40,394.46 258 $40,394.46 $168.31 $314.83 $40,079.63 259 $40,079.63 $167.00 $316.14 $39,763.49 260 $39,763.49 $165.68 $317.46 $39,446.03 261 $39,446.03 $164.36 $318.78 $39,127.25 262 $39,127.25 $163.03 $320.11 $38,807.14 263 $38,807.14 $161.70 $321.44 $38,485.70 264 $38,485.70 $160.36 $322.78 $38,162.92 year 22 end 265 $38,162.92 $159.01 $324.13 $37,838.79 266 $37,838.79 $157.66 $325.48 $37,513.31 267 $37,513.31 $156.31 $326.83 $37,186.48 268 $37,186.48 $154.94 $328.20 $36,858.28 269 $36,858.28 $153.58 $329.56 $36,528.72 270 $36,528.72 $152.20 $330.94 $36,197.78 271 $36,197.78 $150.82 $332.32 $35,865.47 272 $35,865.47 $149.44 $333.70 $35,531.77 273 $35,531.77 $148.05 $335.09 $35,196.68 274 $35,196.68 $146.65 $336.49 $34,860.19 275 $34,860.19 $145.25 $337.89 $34,522.30 276 $34,522.30 $143.84 $339.30 $34,183.00 year 23 end 277 $34,183.00 $142.43 $340.71 $33,842.29 278 $33,842.29 $141.01 $342.13 $33,500.16 279 $33,500.16 $139.58 $343.56 $33,156.61 280 $33,156.61 $138.15 $344.99 $32,811.62 281 $32,811.62 $136.72 $346.42 $32,465.20 282 $32,465.20 $135.27 $347.87 $32,117.33 283 $32,117.33 $133.82 $349.32 $31,768.01 284 $31,768.01 $132.37 $350.77 $31,417.24 285 $31,417.24 $130.91 $352.23 $31,065.00 286 $31,065.00 $129.44 $353.70 $30,711.30 287 $30,711.30 $127.96 $355.18 $30,356.13 288 $30,356.13 $126.48 $356.66 $29,999.47 year 24 end 289 $29,999.47 $125.00 $358.14 $29,641.33 290 $29,641.33 $123.51 $359.63 $29,281.70 291 $29,281.70 $122.01 $361.13 $28,920.56 292 $28,920.56 $120.50 $362.64 $28,557.93 293 $28,557.93 $118.99 $364.15 $28,193.78 294 $28,193.78 $117.47 $365.67 $27,828.11 295 $27,828.11 $115.95 $367.19 $27,460.92 296 $27,460.92 $114.42 $368.72 $27,092.20 297 $27,092.20 $112.88 $370.26 $26,721.95 298 $26,721.95 $111.34 $371.80 $26,350.15 299 $26,350.15 $109.79 $373.35 $25,976.80 300 $25,976.80 $108.24 $374.90 $25,601.90 year 25 end 301 $25,601.90 $106.67 $376.47 $25,225.44 302 $25,225.44 $105.11 $378.03 $24,847.40 303 $24,847.40 $103.53 $379.61 $24,467.79 304 $24,467.79 $101.95 $381.19 $24,086.60 305 $24,086.60 $100.36 $382.78 $23,703.83 306 $23,703.83 $98.77 $384.37 $23,319.45 307 $23,319.45 $97.16 $385.98 $22,933.48 308 $22,933.48 $95.56 $387.58 $22,545.89 309 $22,545.89 $93.94 $389.20 $22,156.70 310 $22,156.70 $92.32 $390.82 $21,765.88 311 $21,765.88 $90.69 $392.45 $21,373.43 312 $21,373.43 $89.06 $394.08 $20,979.34 year 26 end 313 $20,979.34 $87.41 $395.73 $20,583.62 314 $20,583.62 $85.77 $397.37 $20,186.24 315 $20,186.24 $84.11 $399.03 $19,787.21 316 $19,787.21 $82.45 $400.69 $19,386.52 317 $19,386.52 $80.78 $402.36 $18,984.16 318 $18,984.16 $79.10 $404.04 $18,580.12 319 $18,580.12 $77.42 $405.72 $18,174.40 320 $18,174.40 $75.73 $407.41 $17,766.98 321 $17,766.98 $74.03 $409.11 $17,357.87 322 $17,357.87 $72.32 $410.82 $16,947.06 323 $16,947.06 $70.61 $412.53 $16,534.53 324 $16,534.53 $68.89 $414.25 $16,120.29 year 27 end 325 $16,120.29 $67.17 $415.97 $15,704.32 326 $15,704.32 $65.43 $417.71 $15,286.61 327 $15,286.61 $63.69 $419.45 $14,867.17 328 $14,867.17 $61.95 $421.19 $14,445.97 329 $14,445.97 $60.19 $422.95 $14,023.02 330 $14,023.02 $58.43 $424.71 $13,598.31 331 $13,598.31 $56.66 $426.48 $13,171.83 332 $13,171.83 $54.88 $428.26 $12,743.58 333 $12,743.58 $53.10 $430.04 $12,313.54 334 $12,313.54 $51.31 $431.83 $11,881.70 335 $11,881.70 $49.51 $433.63 $11,448.07 336 $11,448.07 $47.70 $435.44 $11,012.63 year 28 end 337 $11,012.63 $45.89 $437.25 $10,575.38 338 $10,575.38 $44.06 $439.08 $10,136.30 339 $10,136.30 $42.23 $440.91 $9,695.40 340 $9,695.40 $40.40 $442.74 $9,252.66 341 $9,252.66 $38.55 $444.59 $8,808.07 342 $8,808.07 $36.70 $446.44 $8,361.63 343 $8,361.63 $34.84 $448.30 $7,913.33 344 $7,913.33 $32.97 $450.17 $7,463.16 345 $7,463.16 $31.10 $452.04 $7,011.12 346 $7,011.12 $29.21 $453.93 $6,557.19 347 $6,557.19 $27.32 $455.82 $6,101.38 348 $6,101.38 $25.42 $457.72 $5,643.66 year 29 end 349 $5,643.66 $23.52 $459.62 $5,184.04 350 $5,184.04 $21.60 $461.54 $4,722.50 351 $4,722.50 $19.68 $463.46 $4,259.03 352 $4,259.03 $17.75 $465.39 $3,793.64 353 $3,793.64 $15.81 $467.33 $3,326.31 354 $3,326.31 $13.86 $469.28 $2,857.03 355 $2,857.03 $11.90 $471.24 $2,385.79 356 $2,385.79 $9.94 $473.20 $1,912.59 357 $1,912.59 $7.97 $475.17 $1,437.42 358 $1,437.42 $5.99 $477.15 $960.27 359 $960.27 $4.00 $479.14 $481.13 360 $481.13 $2.00 $481.14 $0.00 year 30 end

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