Please show your working and formula (If possible) -------------------------- Suppose you take out an $840,000, 20-year...

Please show your working and formula (If possible)

--------------------------

Suppose you take out an $840,000, 20-year mortgage loan to buy a residential apartment. The interest rate on the mortgage is 4.65% per annum, and payments are required to be made annually at the end of each year.

Question:

Construct a mortgage amortisation table showing loan balance at the beginning of each period, annual repayment amount, interest payment, the amortisation of the loan and the loan balance for each year.

Expert Solution

Sl.	Beginning	Interest	Principal	Repayment amountt	Balance
1	840000	39060	26358.02	65418.02	813641.98
2	813641.98	37834.35	27583.67	65418.02	786058.32
3	786058.32	36551.71	28866.31	65418.02	757192.01
4	757192.01	35209.43	30208.59	65418.02	726983.43
5	726983.43	33804.73	31613.29	65418.02	695370.14
6	695370.14	32334.71	33083.31	65418.02	662286.84
7	662286.84	30796.34	34621.68	65418.02	627665.16
8	627665.16	29186.43	36231.59	65418.02	591433.57
9	591433.57	27501.66	37916.36	65418.02	553517.22
10	553517.22	25738.55	39679.47	65418.02	513837.75
11	513837.75	23893.46	41524.56	65418.02	472313.2
12	472313.2	21962.56	43455.46	65418.02	428857.74
13	428857.74	19941.88	45476.14	65418.02	383381.6
14	383381.6	17827.24	47590.78	65418.02	335790.83
15	335790.83	15614.27	49803.75	65418.02	285987.08
16	285987.08	13298.4	52119.62	65418.02	233867.47
17	233867.47	10874.84	54543.18	65418.02	179324.29
18	179324.29	8338.58	57079.44	65418.02	122244.86
19	122244.86	5684.39	59733.63	65418.02	62511.23
20	62511.23	2906.77	62511.25	65418.02	0

Interest = Previous balance * interest rate

Principal = Yearly payment - interest

Balance = Previous balance - principal

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