You obtain a $95.000 home loan for 15 years at 5.1% interest compounded monthly. If you...

You obtain a $95.000 home loan for 15 years at 5.1% interest compounded monthly. If you made the first payment was made on August 15, 2009, how much interest will be paid in the year 2014?

Expert Solution

Total interest paid in 2014 (see below table ) = 316.78+314.92+313.04+311.16+309.27+307.37+305.46+303.54+301.62+299.69+297.75+295.80= 3676.36

Explaination:

Loan repayment schedule
periods(15 years *12 months )	180	months
Interest rate per annum	5.10%
Interest rate per period (5.10/12)	0.425%

Equated annual installments =	loanamount/PVAF(0.425%,180 periods)

Since its 180 montly periods manual calculation of monthly interest for 180 period is practically not possible so instead use excel spreadsheet of loan amortization as follows:

ekkarill92 answered 2 years ago

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You obtain a $95.000 home loan for 15 years at 5.1% interest compounded monthly. If you...

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