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?

Solutions

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 1 year ago

Next > < Previous

Related Solutions

on may 15 2006 you obtained an 82000, 15 year home loan at 5.1% compounded monthly,with...

on may 15 2006 you obtained an 82000, 15 year home loan at 5.1% compounded monthly,with the first payment due on june 15th 2006. The size of the monthly payment is $652.73 A. Find the balance due on the loan on December 15, 2011. B. How much interest will be paid on the loan during 2012? C. If you refinanced the loan on December 15, 2011 at 7.2% interest what will the size of the new payment if the term...

Math of Finance You obtain a 150,000 home loan for $25 years at 4.8% interest compounded...

Math of Finance You obtain a 150,000 home loan for $25 years at 4.8% interest compounded monthly. After 8 years the rate is raised to 6.3% Compute: a)The new payment if the term of the loan is to remain the same. b) The term of the loan if the payment remains the same. What is the size of the concluding payment? DO NOT USE EXCEL TO RESPOND TO THIS QUESTION. Use the appropriate formula and show work instead.

When Gustavo and Serrana bought their home, they had a 5.1% loan with monthly payments of...

When Gustavo and Serrana bought their home, they had a 5.1% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.5% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. A) Find the amount refinanced. (Round your answer to the nearest cent.) (b) Find their new monthly payment. (Round...

1) Calculate the monthly payments on a home loan for $200,000 ar an APR of 5.1%...

1) Calculate the monthly payments on a home loan for $200,000 ar an APR of 5.1% if the loan is for 30 years. Suppose you are able to refinance your loan after 10 years for an APR of 4 %. What are your new payments?

A 25 year home loan of $125000 at 7.25% compounded monthly is obtained. a. Find the monthly...

A 25 year home loan of $125000 at 7.25% compounded monthly is obtained. a. Find the monthly payments rounded up to the next cent. b. State the total amount of interest paid on the loan assuming that it is kept for 25 years and all payments are the same.

Question