In: Accounting
The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per month. How much of that 900,000 on day 1 is deemed to be "current portion of mortgage payable"?
Note: since question is asking for current portion of mortgage | |||
payable on day 1 , so on day 1 only principal payment payable | |||
withing 1-12 months period is relevant | |||
Using the excel cumprin formula | |||
PV | 900000 | ||
Rate | 0.4792% | (5.75%/12) | |
NPER | 240 | (20 x 12) | |
Start period | 1 | ||
End period | 12 | ||
Cumprinc | $ (24,718.62) | ||
=CUMPRINC(0.4792%,240,900000,1,12,0) | |||
So current portion of mortgage payable on day 1 will be $24,718.62 | |||