Question 1 of 8 A $200,000 mortgage was amortized over 15 years by monthly repayments. The...

Question 1 of 8

A $200,000 mortgage was amortized over 15 years by monthly repayments. The interest rate on the mortgage was fixed at 6.82% compounded semi-annually for the entire period.

a. Calculate the size of the payments.

Round up to the next 100

b. Using the payment from part a., calculate the size of the final payment.

Expert Solution

a)
Principal (PV)	$200,000.00
Rate = 6.82%/12	0.57%
Nper = 15 x 12	180
Monthly Payment = PMT(.57%,180,-200000)	$1,777.59
The size of the payments	$1,800.00

b) The size of final payment	$2,062.56
Payment Number	Periodic Payment	Payment of Interest @.57%	Principal repaid	Outstanding Balance
0				$200,000.00
1	$1,800.00	$1,136.67	$663.33	$199,336.67
2	$1,800.00	$1,132.90	$667.10	$198,669.56
3	$1,800.00	$1,129.11	$670.89	$197,998.67
4	$1,800.00	$1,125.29	$674.71	$197,323.96
5	$1,800.00	$1,121.46	$678.54	$196,645.42
6	$1,800.00	$1,117.60	$682.40	$195,963.02
7	$1,800.00	$1,113.72	$686.28	$195,276.74
8	$1,800.00	$1,109.82	$690.18	$194,586.57
9	$1,800.00	$1,105.90	$694.10	$193,892.47
10	$1,800.00	$1,101.96	$698.04	$193,194.42
11	$1,800.00	$1,097.99	$702.01	$192,492.41
12	$1,800.00	$1,094.00	$706.00	$191,786.41
13	$1,800.00	$1,089.99	$710.01	$191,076.40
14	$1,800.00	$1,085.95	$714.05	$190,362.35
15	$1,800.00	$1,081.89	$718.11	$189,644.24
16	$1,800.00	$1,077.81	$722.19	$188,922.05
17	$1,800.00	$1,073.71	$726.29	$188,195.76
18	$1,800.00	$1,069.58	$730.42	$187,465.34
19	$1,800.00	$1,065.43	$734.57	$186,730.76
20	$1,800.00	$1,061.25	$738.75	$185,992.02
21	$1,800.00	$1,057.05	$742.95	$185,249.07
22	$1,800.00	$1,052.83	$747.17	$184,501.90
23	$1,800.00	$1,048.59	$751.41	$183,750.49
24	$1,800.00	$1,044.32	$755.68	$182,994.81
25	$1,800.00	$1,040.02	$759.98	$182,234.83
26	$1,800.00	$1,035.70	$764.30	$181,470.53
27	$1,800.00	$1,031.36	$768.64	$180,701.88
28	$1,800.00	$1,026.99	$773.01	$179,928.87
29	$1,800.00	$1,022.60	$777.40	$179,151.47
30	$1,800.00	$1,018.18	$781.82	$178,369.65
31	$1,800.00	$1,013.73	$786.27	$177,583.38
32	$1,800.00	$1,009.27	$790.73	$176,792.65
33	$1,800.00	$1,004.77	$795.23	$175,997.42
34	$1,800.00	$1,000.25	$799.75	$175,197.67
35	$1,800.00	$995.71	$804.29	$174,393.38
36	$1,800.00	$991.14	$808.86	$173,584.51
37	$1,800.00	$986.54	$813.46	$172,771.05
38	$1,800.00	$981.92	$818.08	$171,952.97
39	$1,800.00	$977.27	$822.73	$171,130.23
40	$1,800.00	$972.59	$827.41	$170,302.82
41	$1,800.00	$967.89	$832.11	$169,470.71
42	$1,800.00	$963.16	$836.84	$168,633.87
43	$1,800.00	$958.40	$841.60	$167,792.27
44	$1,800.00	$953.62	$846.38	$166,945.89
45	$1,800.00	$948.81	$851.19	$166,094.70
46	$1,800.00	$943.97	$856.03	$165,238.67
47	$1,800.00	$939.11	$860.89	$164,377.78
48	$1,800.00	$934.21	$865.79	$163,511.99
49	$1,800.00	$929.29	$870.71	$162,641.29
50	$1,800.00	$924.34	$875.66	$161,765.63
51	$1,800.00	$919.37	$880.63	$160,885.00
52	$1,800.00	$914.36	$885.64	$159,999.36
53	$1,800.00	$909.33	$890.67	$159,108.69
54	$1,800.00	$904.27	$895.73	$158,212.96
55	$1,800.00	$899.18	$900.82	$157,312.14
56	$1,800.00	$894.06	$905.94	$156,406.19
57	$1,800.00	$888.91	$911.09	$155,495.10
58	$1,800.00	$883.73	$916.27	$154,578.83
59	$1,800.00	$878.52	$921.48	$153,657.35
60	$1,800.00	$873.29	$926.71	$152,730.64
61	$1,800.00	$868.02	$931.98	$151,798.66
62	$1,800.00	$862.72	$937.28	$150,861.38
63	$1,800.00	$857.40	$942.60	$149,918.78
64	$1,800.00	$852.04	$947.96	$148,970.82
65	$1,800.00	$846.65	$953.35	$148,017.47
66	$1,800.00	$841.23	$958.77	$147,058.70
67	$1,800.00	$835.78	$964.22	$146,094.48
68	$1,800.00	$830.30	$969.70	$145,124.79
69	$1,800.00	$824.79	$975.21	$144,149.58
70	$1,800.00	$819.25	$980.75	$143,168.83
71	$1,800.00	$813.68	$986.32	$142,182.51
72	$1,800.00	$808.07	$991.93	$141,190.58
73	$1,800.00	$802.43	$997.57	$140,193.01
74	$1,800.00	$796.76	$1,003.24	$139,189.77
75	$1,800.00	$791.06	$1,008.94	$138,180.83
76	$1,800.00	$785.33	$1,014.67	$137,166.16
77	$1,800.00	$779.56	$1,020.44	$136,145.72
78	$1,800.00	$773.76	$1,026.24	$135,119.49
79	$1,800.00	$767.93	$1,032.07	$134,087.41
80	$1,800.00	$762.06	$1,037.94	$133,049.48
81	$1,800.00	$756.16	$1,043.84	$132,005.64
82	$1,800.00	$750.23	$1,049.77	$130,955.87
83	$1,800.00	$744.27	$1,055.73	$129,900.14
84	$1,800.00	$738.27	$1,061.73	$128,838.41
85	$1,800.00	$732.23	$1,067.77	$127,770.64
86	$1,800.00	$726.16	$1,073.84	$126,696.80
87	$1,800.00	$720.06	$1,079.94	$125,616.86
88	$1,800.00	$713.92	$1,086.08	$124,530.78
89	$1,800.00	$707.75	$1,092.25	$123,438.53
90	$1,800.00	$701.54	$1,098.46	$122,340.08
91	$1,800.00	$695.30	$1,104.70	$121,235.37
92	$1,800.00	$689.02	$1,110.98	$120,124.40
93	$1,800.00	$682.71	$1,117.29	$119,007.10
94	$1,800.00	$676.36	$1,123.64	$117,883.46
95	$1,800.00	$669.97	$1,130.03	$116,753.43
96	$1,800.00	$663.55	$1,136.45	$115,616.98
97	$1,800.00	$657.09	$1,142.91	$114,474.07
98	$1,800.00	$650.59	$1,149.41	$113,324.66
99	$1,800.00	$644.06	$1,155.94	$112,168.73
100	$1,800.00	$637.49	$1,162.51	$111,006.22
101	$1,800.00	$630.89	$1,169.11	$109,837.10
102	$1,800.00	$624.24	$1,175.76	$108,661.34
103	$1,800.00	$617.56	$1,182.44	$107,478.90
104	$1,800.00	$610.84	$1,189.16	$106,289.74
105	$1,800.00	$604.08	$1,195.92	$105,093.82
106	$1,800.00	$597.28	$1,202.72	$103,891.10
107	$1,800.00	$590.45	$1,209.55	$102,681.55
108	$1,800.00	$583.57	$1,216.43	$101,465.13
109	$1,800.00	$576.66	$1,223.34	$100,241.79
110	$1,800.00	$569.71	$1,230.29	$99,011.49
111	$1,800.00	$562.72	$1,237.28	$97,774.21
112	$1,800.00	$555.68	$1,244.32	$96,529.89
113	$1,800.00	$548.61	$1,251.39	$95,278.50
114	$1,800.00	$541.50	$1,258.50	$94,020.00
115	$1,800.00	$534.35	$1,265.65	$92,754.35
116	$1,800.00	$527.15	$1,272.85	$91,481.50
117	$1,800.00	$519.92	$1,280.08	$90,201.42
118	$1,800.00	$512.64	$1,287.36	$88,914.07
119	$1,800.00	$505.33	$1,294.67	$87,619.40
120	$1,800.00	$497.97	$1,302.03	$86,317.37
121	$1,800.00	$490.57	$1,309.43	$85,007.94
122	$1,800.00	$483.13	$1,316.87	$83,691.07
123	$1,800.00	$475.64	$1,324.36	$82,366.71
124	$1,800.00	$468.12	$1,331.88	$81,034.83
125	$1,800.00	$460.55	$1,339.45	$79,695.38
126	$1,800.00	$452.94	$1,347.06	$78,348.31
127	$1,800.00	$445.28	$1,354.72	$76,993.59
128	$1,800.00	$437.58	$1,362.42	$75,631.17
129	$1,800.00	$429.84	$1,370.16	$74,261.01
130	$1,800.00	$422.05	$1,377.95	$72,883.06
131	$1,800.00	$414.22	$1,385.78	$71,497.28
132	$1,800.00	$406.34	$1,393.66	$70,103.62
133	$1,800.00	$398.42	$1,401.58	$68,702.04
134	$1,800.00	$390.46	$1,409.54	$67,292.50
135	$1,800.00	$382.45	$1,417.55	$65,874.94
136	$1,800.00	$374.39	$1,425.61	$64,449.33
137	$1,800.00	$366.29	$1,433.71	$63,015.62
138	$1,800.00	$358.14	$1,441.86	$61,573.76
139	$1,800.00	$349.94	$1,450.06	$60,123.70
140	$1,800.00	$341.70	$1,458.30	$58,665.41
141	$1,800.00	$333.42	$1,466.58	$57,198.82
142	$1,800.00	$325.08	$1,474.92	$55,723.90
143	$1,800.00	$316.70	$1,483.30	$54,240.60
144	$1,800.00	$308.27	$1,491.73	$52,748.87
145	$1,800.00	$299.79	$1,500.21	$51,248.66
146	$1,800.00	$291.26	$1,508.74	$49,739.92
147	$1,800.00	$282.69	$1,517.31	$48,222.61
148	$1,800.00	$274.07	$1,525.93	$46,696.67
149	$1,800.00	$265.39	$1,534.61	$45,162.07
150	$1,800.00	$256.67	$1,543.33	$43,618.74
151	$1,800.00	$247.90	$1,552.10	$42,066.64
152	$1,800.00	$239.08	$1,560.92	$40,505.72
153	$1,800.00	$230.21	$1,569.79	$38,935.92
154	$1,800.00	$221.29	$1,578.71	$37,357.21
155	$1,800.00	$212.31	$1,587.69	$35,769.52
156	$1,800.00	$203.29	$1,596.71	$34,172.81
157	$1,800.00	$194.22	$1,605.78	$32,567.03
158	$1,800.00	$185.09	$1,614.91	$30,952.12
159	$1,800.00	$175.91	$1,624.09	$29,328.03
160	$1,800.00	$166.68	$1,633.32	$27,694.71
161	$1,800.00	$157.40	$1,642.60	$26,052.11
162	$1,800.00	$148.06	$1,651.94	$24,400.17
163	$1,800.00	$138.67	$1,661.33	$22,738.84
164	$1,800.00	$129.23	$1,670.77	$21,068.08
165	$1,800.00	$119.74	$1,680.26	$19,387.81
166	$1,800.00	$110.19	$1,689.81	$17,698.00
167	$1,800.00	$100.58	$1,699.42	$15,998.58
168	$1,800.00	$90.93	$1,709.07	$14,289.51
169	$1,800.00	$81.21	$1,718.79	$12,570.72
170	$1,800.00	$71.44	$1,728.56	$10,842.17
171	$1,800.00	$61.62	$1,738.38	$9,103.79
172	$1,800.00	$51.74	$1,748.26	$7,355.53
173	$1,800.00	$41.80	$1,758.20	$5,597.33
174	$1,800.00	$31.81	$1,768.19	$3,829.14
175	$1,800.00	$21.76	$1,778.24	$2,050.90
176	$2,062.56	$11.66	$2,050.90	$0.00

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