Assume a mortgage loan amount of $ 400,000, with annual interest rate 4% and 15 years...

Assume a mortgage loan amount of $ 400,000, with annual interest rate 4% and 15 years term 1. Calculate annual payment amount 2. Calculate monthly payment amount 3. Do you pay more annually or monthly? Why? 4. Prepare a 180 month loan amortization schedule. How much is your total interest payment?

Expert Solution

Loan	400000
Rate	0.33%
Months	180
Monthly Payment	$2,958.75
Annual payment	$35,976.44
Annual payment is more (35976>2958*12)


Month	Payment	Interest Paid	Principal Paid	Loan Oustanding
1	$2,958.75	1333.333333	$1,625.42	398374.5816
2	$2,958.75	1327.915272	$1,630.84	396743.7452
3	$2,958.75	1322.479151	$1,636.27	395107.4726
4	$2,958.75	1317.024909	$1,641.73	393465.7459
5	$2,958.75	1311.552486	$1,647.20	391818.5466
6	$2,958.75	1306.061822	$1,652.69	390165.8568
7	$2,958.75	1300.552856	$1,658.20	388507.6579
8	$2,958.75	1295.025526	$1,663.73	386843.9317
9	$2,958.75	1289.479772	$1,669.27	385174.6598
10	$2,958.75	1283.915533	$1,674.84	383499.8236
11	$2,958.75	1278.332745	$1,680.42	381819.4047
12	$2,958.75	1272.731349	$1,686.02	380133.3843
13	$2,958.75	1267.111281	$1,691.64	378441.7439
14	$2,958.75	1261.47248	$1,697.28	376744.4647
15	$2,958.75	1255.814882	$1,702.94	375041.5279
16	$2,958.75	1250.138426	$1,708.61	373332.9146
17	$2,958.75	1244.443049	$1,714.31	371618.6059
18	$2,958.75	1238.728686	$1,720.02	369898.5829
19	$2,958.75	1232.995276	$1,725.76	368172.8265
20	$2,958.75	1227.242755	$1,731.51	366441.3175
21	$2,958.75	1221.471058	$1,737.28	364704.0369
22	$2,958.75	1215.680123	$1,743.07	362960.9653
23	$2,958.75	1209.869884	$1,748.88	361212.0835
24	$2,958.75	1204.040278	$1,754.71	359457.3721
25	$2,958.75	1198.19124	$1,760.56	357696.8116
26	$2,958.75	1192.322705	$1,766.43	355930.3826
27	$2,958.75	1186.434609	$1,772.32	354158.0655
28	$2,958.75	1180.526885	$1,778.22	352379.8407
29	$2,958.75	1174.599469	$1,784.15	350595.6885
30	$2,958.75	1168.652295	$1,790.10	348805.5891
31	$2,958.75	1162.685297	$1,796.07	347009.5227
32	$2,958.75	1156.698409	$1,802.05	345207.4694
33	$2,958.75	1150.691565	$1,808.06	343399.4092
34	$2,958.75	1144.664697	$1,814.09	341585.3222
35	$2,958.75	1138.617741	$1,820.13	339765.1883
36	$2,958.75	1132.550628	$1,826.20	337938.9872
37	$2,958.75	1126.463291	$1,832.29	336106.6988
38	$2,958.75	1120.355663	$1,838.40	334268.3027
39	$2,958.75	1114.227676	$1,844.52	332423.7787
40	$2,958.75	1108.079262	$1,850.67	330573.1063
41	$2,958.75	1101.910354	$1,856.84	328716.2649
42	$2,958.75	1095.720883	$1,863.03	326853.2341
43	$2,958.75	1089.51078	$1,869.24	324983.9932
44	$2,958.75	1083.279977	$1,875.47	323108.5215
45	$2,958.75	1077.028405	$1,881.72	321226.7982
46	$2,958.75	1070.755994	$1,888.00	319338.8024
47	$2,958.75	1064.462675	$1,894.29	317444.5134
48	$2,958.75	1058.148378	$1,900.60	315543.9101
49	$2,958.75	1051.813034	$1,906.94	313636.9714
50	$2,958.75	1045.456571	$1,913.30	311723.6763
51	$2,958.75	1039.078921	$1,919.67	309804.0035
52	$2,958.75	1032.680012	$1,926.07	307877.9318
53	$2,958.75	1026.259773	$1,932.49	305945.4399
54	$2,958.75	1019.818133	$1,938.93	304006.5063
55	$2,958.75	1013.355021	$1,945.40	302061.1096
56	$2,958.75	1006.870365	$1,951.88	300109.2283
57	$2,958.75	1000.364094	$1,958.39	298150.8407
58	$2,958.75	993.8361357	$1,964.92	296185.9251
59	$2,958.75	987.2864171	$1,971.47	294214.4598
60	$2,958.75	980.7148662	$1,978.04	292236.423
61	$2,958.75	974.12141	$1,984.63	290251.7927
62	$2,958.75	967.5059757	$1,991.25	288260.547
63	$2,958.75	960.86849	$1,997.88	286262.6638
64	$2,958.75	954.2088793	$2,004.54	284258.121
65	$2,958.75	947.5270698	$2,011.22	282246.8963
66	$2,958.75	940.8229877	$2,017.93	280228.9676
67	$2,958.75	934.0965587	$2,024.66	278204.3125
68	$2,958.75	927.3477082	$2,031.40	276172.9085
69	$2,958.75	920.5763616	$2,038.18	274134.7331
70	$2,958.75	913.7824438	$2,044.97	272089.7639
71	$2,958.75	906.9658796	$2,051.79	270037.978
72	$2,958.75	900.1265935	$2,058.63	267979.3529
73	$2,958.75	893.2645098	$2,065.49	265913.8657
74	$2,958.75	886.3795525	$2,072.37	263841.4936
75	$2,958.75	879.4716453	$2,079.28	261762.2135
76	$2,958.75	872.5407118	$2,086.21	259676.0025
77	$2,958.75	865.5866752	$2,093.17	257582.8375
78	$2,958.75	858.6094584	$2,100.14	255482.6953
79	$2,958.75	851.6089843	$2,107.14	253375.5526
80	$2,958.75	844.5851752	$2,114.17	251261.386
81	$2,958.75	837.5379534	$2,121.21	249140.1723
82	$2,958.75	830.4672409	$2,128.28	247011.8878
83	$2,958.75	823.3729594	$2,135.38	244876.5091
84	$2,958.75	816.2550303	$2,142.50	242734.0124
85	$2,958.75	809.1133747	$2,149.64	240584.3741
86	$2,958.75	801.9479136	$2,156.80	238427.5703
87	$2,958.75	794.7585676	$2,163.99	236263.5772
88	$2,958.75	787.5452572	$2,171.21	234092.3707
89	$2,958.75	780.3079024	$2,178.44	231913.9269
90	$2,958.75	773.046423	$2,185.71	229728.2216
91	$2,958.75	765.7607388	$2,192.99	227535.2307
92	$2,958.75	758.4507689	$2,200.30	225334.9297
93	$2,958.75	751.1164324	$2,207.64	223127.2945
94	$2,958.75	743.7576482	$2,214.99	220912.3004
95	$2,958.75	736.3743347	$2,222.38	218689.923
96	$2,958.75	728.9664101	$2,229.79	216460.1377
97	$2,958.75	721.5337925	$2,237.22	214222.9198
98	$2,958.75	714.0763995	$2,244.68	211978.2445
99	$2,958.75	706.5941484	$2,252.16	209726.087
100	$2,958.75	699.0869566	$2,259.66	207466.4222
101	$2,958.75	691.5547408	$2,267.20	205199.2253
102	$2,958.75	683.9974176	$2,274.75	202924.471
103	$2,958.75	676.4149033	$2,282.34	200642.1342
104	$2,958.75	668.807114	$2,289.94	198352.1896
105	$2,958.75	661.1739653	$2,297.58	196054.6119
106	$2,958.75	653.5153729	$2,305.24	193749.3755
107	$2,958.75	645.8312518	$2,312.92	191436.4551
108	$2,958.75	638.1215169	$2,320.63	189115.8249
109	$2,958.75	630.386083	$2,328.37	186787.4593
110	$2,958.75	622.6248643	$2,336.13	184451.3324
111	$2,958.75	614.8377748	$2,343.91	182107.4185
112	$2,958.75	607.0247284	$2,351.73	179755.6915
113	$2,958.75	599.1856385	$2,359.57	177396.1255
114	$2,958.75	591.3204182	$2,367.43	175028.6942
115	$2,958.75	583.4289806	$2,375.32	172653.3715
116	$2,958.75	575.5112382	$2,383.24	170270.131
117	$2,958.75	567.5671033	$2,391.18	167878.9464
118	$2,958.75	559.596488	$2,399.16	165479.7912
119	$2,958.75	551.599304	$2,407.15	163072.6388
120	$2,958.75	543.5754626	$2,415.18	160657.4626
121	$2,958.75	535.5248752	$2,423.23	158234.2357
122	$2,958.75	527.4474524	$2,431.30	155802.9315
123	$2,958.75	519.3431049	$2,439.41	153363.5229
124	$2,958.75	511.2117429	$2,447.54	150915.9829
125	$2,958.75	503.0532764	$2,455.70	148460.2845
126	$2,958.75	494.867615	$2,463.88	145996.4004
127	$2,958.75	486.654668	$2,472.10	143524.3034
128	$2,958.75	478.4143446	$2,480.34	141043.966
129	$2,958.75	470.1465534	$2,488.61	138555.3609
130	$2,958.75	461.8512029	$2,496.90	136058.4604
131	$2,958.75	453.5282012	$2,505.22	133553.2369
132	$2,958.75	445.1774562	$2,513.57	131039.6626
133	$2,958.75	436.7988754	$2,521.95	128517.7098
134	$2,958.75	428.392366	$2,530.36	125987.3505
135	$2,958.75	419.9578348	$2,538.79	123448.5566
136	$2,958.75	411.4951886	$2,547.26	120901.3001
137	$2,958.75	403.0043336	$2,555.75	118345.5527
138	$2,958.75	394.4851757	$2,564.27	115781.2862
139	$2,958.75	385.9376206	$2,572.81	113208.4721
140	$2,958.75	377.3615736	$2,581.39	110627.082
141	$2,958.75	368.7569399	$2,589.99	108037.0872
142	$2,958.75	360.123624	$2,598.63	105438.4591
143	$2,958.75	351.4615304	$2,607.29	102831.169
144	$2,958.75	342.7705632	$2,615.98	100215.1878
145	$2,958.75	334.050626	$2,624.70	97590.48674
146	$2,958.75	325.3016225	$2,633.45	94957.03666
147	$2,958.75	316.5234555	$2,642.23	92314.80841
148	$2,958.75	307.716028	$2,651.04	89663.77273
149	$2,958.75	298.8792424	$2,659.87	87003.90027
150	$2,958.75	290.0130009	$2,668.74	84335.16157
151	$2,958.75	281.1172052	$2,677.63	81657.52708
152	$2,958.75	272.1917569	$2,686.56	78970.96713
153	$2,958.75	263.2365571	$2,695.52	76275.45199
154	$2,958.75	254.2515066	$2,704.50	73570.95179
155	$2,958.75	245.236506	$2,713.52	70857.43659
156	$2,958.75	236.1914553	$2,722.56	68134.87635
157	$2,958.75	227.1162545	$2,731.64	65403.2409
158	$2,958.75	218.010803	$2,740.74	62662.5
159	$2,958.75	208.875	$2,749.88	59912.6233
160	$2,958.75	199.7087443	$2,759.04	57153.58034
161	$2,958.75	190.5119345	$2,768.24	54385.34057
162	$2,958.75	181.2844686	$2,777.47	51607.87334
163	$2,958.75	172.0262445	$2,786.73	48821.14788
164	$2,958.75	162.7371596	$2,796.01	46025.13334
165	$2,958.75	153.4171111	$2,805.33	43219.79874
166	$2,958.75	144.0659958	$2,814.69	40405.11304
167	$2,958.75	134.6837101	$2,824.07	37581.04505
168	$2,958.75	125.2701502	$2,833.48	34747.56349
169	$2,958.75	115.8252116	$2,842.93	31904.637
170	$2,958.75	106.34879	$2,852.40	29052.23409
171	$2,958.75	96.8407803	$2,861.91	26190.32317
172	$2,958.75	87.30107722	$2,871.45	23318.87254
173	$2,958.75	77.72957514	$2,881.02	20437.85041
174	$2,958.75	68.12616805	$2,890.63	17547.22488
175	$2,958.75	58.4907496	$2,900.26	14646.96393
176	$2,958.75	48.82321309	$2,909.93	11737.03544
177	$2,958.75	39.12345146	$2,919.63	8817.407187
178	$2,958.75	29.39135729	$2,929.36	5888.046842
179	$2,958.75	19.62682281	$2,939.12	2948.921963
180	$2,958.75	9.829739875	$2,948.92	0

jeff jeffy answered 2 years ago

Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years...

Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years term 1. Calculate annual payment amount 2. Calculate monthly payment amount 3. Do you pay more annually or monthly? Why? 4. Prepare a 60 month loan amortization schedule. How much is your total interest payment?

Assume you are to borrow money, the loan amount, at an annual interest rate to be...

Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period. Installment Loan Schedule Loan Amount $25,000 Annual Interest Rate 9.90% Periods per year 12 Years to payback 5 See Table B.3 in book. Factor 47.17454194 FACTOR = [1 - (1 / ((1 + R)^n)]/ R Equal Payments $529.95 let R = period interest rate let n = number of periods to payback loan Number of periods: 60 Reduction...

A fully amortizing mortgage loan is made for $90,000 for 15 years. The interest rate is...

A fully amortizing mortgage loan is made for $90,000 for 15 years. The interest rate is 6 percent per year compounding monthly. Payments are to be made monthly. What is the principal payment in the first monthly payment?

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of...

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of 6 percent and monthly payments of $2,398.20. What is the outstanding balance on your current loan if you just make the 96th payment?

A loan is for $600,000 (mortgage), 30 years monthly, 4% fixed rate interest. What is the...

A loan is for $600,000 (mortgage), 30 years monthly, 4% fixed rate interest. What is the payment, 5-year payoff, 5-year principal paid, and 5-year interest paid?

When a mortgage is for 15 years at a 4.5% interest and the amount borrowed is...

When a mortgage is for 15 years at a 4.5% interest and the amount borrowed is $200,000 and closing costs are 4% of the new mortgage paid at closing by the buyer what is the...a) monthly mortgage principal and interest payment. b) balance of the mortgage after 5 years? c) total interest paid on the mortgage over ther 15 years? d) what is the first year's total mortgage interest tax deduction, if this is a home? e) what are the...

The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of...

The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of 6.7%. (a) How much greater is their mortgage payment if the term is 20 years rather than 30 years? $ (b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?

The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of...

The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of 6.55%. (a) How much greater is their mortgage payment if the term is 20 years rather than 30 years? (b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?

loan amount - 1,200,000. terms(years) - 15 interest rate - 3.125% payment frequency - monthly Amortizing...

loan amount - 1,200,000. terms(years) - 15 interest rate - 3.125% payment frequency - monthly Amortizing Loan Assignment

Six years ago you took out a $220,000, 15-year mortgage with an annual interest rate of...

Six years ago you took out a $220,000, 15-year mortgage with an annual interest rate of 6% compounded monthly. i. Estimate your monthly payments on the mortgage. ii. Compute the outstanding balance on your current loan if you have just made the 72th payments?

Question