Question
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"?
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"?
Solutions
Expert Solution
| 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 | |||
ekkarill92 answered 2 years agoRelated Solutions
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1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per...
1: 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"?
2: Explain the difference between straight-line
method of amortization a bond discount as opposed to using the
effective interest method of amortizing a bond discount.
3: Why does a Bond sell at a discount?
Why would a Bond sell at a premium?
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