Question

In: Finance

Suppose you buy your first condo that costs $226,500 , you have 20% of it for...

Suppose you buy your first condo that costs $226,500 , you have 20% of it for a down payment, for the rest you will take a 30 years mortgage loan at a 3% nominal interest rate.

a) What will your first year annual payment be?

b) How much of this first payment will be interest and how much principal?

c) How much will be the loan balance at the end of year 10?

d) How much of the last payment will be interest and how much principal?

*Show your work

Solutions

Expert Solution

A) 6876

B) first payment interest 311 and principal will be 453

C)133934

D) emi is of 762 which includes principal of 760 and interest of 2

2020

₹ 2,827

₹ 4,049

₹ 1,78,373

2021

₹ 3,869

₹ 5,298

₹ 1,74,504

2022

₹ 3,987

₹ 5,181

₹ 1,70,518

2023

₹ 4,108

₹ 5,059

₹ 1,66,409

2024

₹ 4,233

₹ 4,934

₹ 1,62,177

2025

₹ 4,362

₹ 4,806

₹ 1,57,815

2026

₹ 4,494

₹ 4,673

₹ 1,53,320

2027

₹ 4,631

₹ 4,536

₹ 1,48,689

2028

₹ 4,772

₹ 4,395

₹ 1,43,917

2029

₹ 4,917

₹ 4,250

₹ 1,39,000

2030

₹ 5,067

₹ 4,101

₹ 1,33,934

2031

₹ 5,221

₹ 3,947

₹ 1,28,713

2032

₹ 5,380

₹ 3,788

₹ 1,23,333

2033

₹ 5,543

₹ 3,624

₹ 1,17,790

2034

₹ 5,712

₹ 3,456

₹ 1,12,079

2035

₹ 5,885

₹ 3,282

₹ 1,06,193

2036

₹ 6,065

₹ 3,103

₹ 1,00,129

2037

₹ 6,249

₹ 2,918

₹ 93,880

2038

₹ 6,439

₹ 2,728

₹ 87,441

2039

₹ 6,635

₹ 2,532

₹ 80,806

2040

₹ 6,837

₹ 2,331

₹ 73,969

2041

₹ 7,045

₹ 2,123

₹ 66,924

2042

₹ 7,259

₹ 1,908

₹ 59,665

2043

₹ 7,480

₹ 1,688

₹ 52,186

2044

₹ 7,707

₹ 1,460

₹ 44,479

2045

₹ 7,942

₹ 1,226

₹ 36,537

2046

₹ 8,183

₹ 984

₹ 28,354

2047

₹ 8,432

₹ 735

₹ 19,922

2048

₹ 8,689

₹ 479

₹ 11,233

2049

₹ 8,953

₹ 215

₹ 2,280

2050

₹ 2,280

₹ 11

₹ 0

Jan	₹ 758	₹ 6	₹ 1,522
Feb	₹ 760	₹ 4	₹ 762
Mar	₹ 762	₹ 2

jeff jeffy answered 1 year ago

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