Amanda and Sal have a loan for $185,000 at 7% interest. If their monthly payments are...

Amanda and Sal have a loan for $185,000 at 7% interest. If their monthly payments are $1,230.81, how much of their second payment will go to principal?

Solutions

Expert Solution

Ans $ 152.53

	OPENING BALANCE	INSTALMENT	INTEREST (OPENING BALANCE * 5% * 1/12)	PRINCIPAL = (INSTALMENT - INTEREST)	CLOSING BALANCE
1	1,85,000.00	1,230.81	1,079.17	151.64	1,84,848.36
2	1,84,848.36	1,230.81	1,078.28	152.53	1,84,695.83

jeff jeffy answered 2 months ago

Next > < Previous

Related Solutions

A) For a loan of $160,000 at 7% annual interest, monthly payments, for 30 years, how...

A) For a loan of $160,000 at 7% annual interest, monthly payments, for 30 years, how much total interest will be paid over the life of the loan? Group of answer choices $279,785.00 $81,002.00 $223,214.00 $265,778.00 B) For a loan of $250,000 at 6% annual interest, with monthly payments over 15 years, if you pay an additional $100 in principle per month, how much total interest will you pay over the life of the loan? Group of answer choices $218,090.00...

(2) A 2 year, $6,000 loan at 7% interest with monthly payments. The lender charges you...

(2) A 2 year, $6,000 loan at 7% interest with monthly payments. The lender charges you a $100 fee that can be paid off, interest free, in equal monthly installments over the life of the loan. Thinking of the fee as additional interest, what is the actual interest rate you will pay?

Suppose that you have two loan choices with monthly payments Choice Loan Amount Term (years) Interest...

Suppose that you have two loan choices with monthly payments Choice Loan Amount Term (years) Interest Rate 1 $ 250,000 30 5% 2 $ 220,000 30 4.50% A) What is the annual incremental borrowing cost for loan 1 over loan 2 if you hold the loan for the entire term, assuming there is no origination cost associated with the loans? 3.34% 5.34% 8.34% 10.34% B) If the origination costs for loans 1 and 2 are $3,500 and $2,500 respectively, and...

The following loan is a simple interest amortized loan with monthly payments. (Round your answers to...

The following loan is a simple interest amortized loan with monthly payments. (Round your answers to the nearest cent.) $7000, 9 1/2%, 4 years

A loan will be repaid in 5 years with monthly payments at a nominal interest rate...

A loan will be repaid in 5 years with monthly payments at a nominal interest rate of 9% monthly convertible. The first payment is $1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 2% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

A $40,000 mortgage loan charges interest at 6.6% compounded monthly for a four-year term. Monthly payments...

A $40,000 mortgage loan charges interest at 6.6% compounded monthly for a four-year term. Monthly payments were calculated for a 15-year amortization and then rounded up to the next higher $10. a) What will be the principal balance at the end of the first term? b) What will the monthly payments be on renewal for a three-year term if it is calculated for an interest rate of 7.2% compounded monthly and an 11-year amortization period, but again rounded to the...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest on the loan is j12=12%. The principal repaid in the 25th payment is $206.41.What is the size of the loan?

Prepare the amortization schedule for a thirty-year variable interest loan with monthly payments of $250,000 at...

Prepare the amortization schedule for a thirty-year variable interest loan with monthly payments of $250,000 at an APR of 6.8%.

a. Prepare the amortization schedule for a thirty-year variable interest loan with monthly payments of $250,000...

a. Prepare the amortization schedule for a thirty-year variable interest loan with monthly payments of $250,000 at an APR of 6.8%. specifies monthly compounding. b.What is the interest payment and principal amounts in the 110th payment? c. Use the annuity formula to find how much principal you still owe to the bank for the 110th payment. Check that this value is the same you have in your amortization schedule. d. How much in total interest will you pay? e. Suppose...

Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build...

Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build up a sinking fund with monthly deposits to repay the principal with a single payment 19 months from now. If the interest being charged on the loan is j12 = 8.5% and the interest being earned on the sinking fund is j12= 5.4%, what is the monthly cost of the debt for Barbara?

Subjects