Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments. A....

Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments.
A. (1 pt) How much of the payment is interest for month 100?
B. (1 pt) How much total interest do you pay in the first six years?

Solutions

Expert Solution

1.
=FV(4.5%/12,99,PMT(4.5%/12,12*30,-250000),-250000)*4.5%/12=789.834921518944

2.
=PMT(4.5%/12,12*30,-250000)*12*6-(250000-FV(4.5%/12,12*6,PMT(4.5%/12,12*30,-250000),-250000))=64049.5726007456

jeff jeffy answered 2 years ago

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