Question

1. You take out a $480,000 mortgage for 30 years at 5.5% interest compounded monthly. Create an amortization schedule below for the first 3 periods of payment.

Period	Payment	Interest	Balance	Unpaid Balance
				$480,000
1
2
3

1. How much do you pay in total for the loan?

2. How much of this goes toward interest?

Answer 1

we need to find monthly payment first

PMT=?

L=480000

r=5.5% = 0.055

n=12 for monthly payments

t=30 years

.

now make a table

				480000
1	2725.39	2200	525.39	479474.61
2	2725.39	2197.59	527.8	478946.82
3	2725.39	2195.17	530.21	478416.6

total pay for the loan is

.....................total pay

.

.

interest is given by

.......................interest