Question

The interest rate for the first five years of a $27,000 mortgage loan was 3.25% compounded semiannually. The monthly payments computed for a 10-year amortization were rounded to the next higher $10. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

a.	Calculate the principal balance at the end of the first term.

Principal balance

$

    

b.	Upon renewal at 5.75% compounded semiannually, monthly payments were calculated for a five-year amortization and again rounded up to the next $10. What will be the amount of the last payment?

Final payment

$

Answer 1

Dates

Replaced the values in

The pay montlhy is rounded to the next 10$ more nearest, so

R=260$

End of month	Interest charged	Payment made R	Payment toward principal	Oustanding principal
0				25000$
1	135	260	125	24875

Month 1

Calcule Interest charged

Calcule Payment toward l

Calculate Oustanding principal

Repeat the same calculations until reaching 5 years (60 months),and obtained the next table

End of month	Interest charged	R	Payment Towart	Oustanding principal
1	135	260	125	24875
2	134,325	260	125,675	24749,325
3	133,646355	260	126,353645	24622,97136
4	132,9640453	260	127,0359547	24495,9354
5	132,2780512	260	127,7219488	24368,21345
6	131,5883526	260	128,4116474	24239,8018
7	130,8949297	260	129,1050703	24110,69673
8	130,1977624	260	129,8022376	23980,8945
9	129,4968303	260	130,5031697	23850,39133
10	128,7921132	260	131,2078868	23719,18344
11	128,0835906	260	131,9164094	23587,26703
12	127,371242	260	132,628758	23454,63827
13	126,6550467	260	133,3449533	23321,29332
14	125,9349839	260	134,0650161	23187,2283
15	125,2110328	260	134,7889672	23052,43934
16	124,4831724	260	135,5168276	22916,92251
17	123,7513815	260	136,2486185	22780,67389
18	123,015639	260	136,984361	22643,68953
19	122,2759235	260	137,7240765	22505,96545
20	121,5322134	260	138,4677866	22367,49767
21	120,7844874	260	139,2155126	22228,28215
22	120,0327236	260	139,9672764	22088,31488
23	119,2769003	260	140,7230997	21947,59178
24	118,5169956	260	141,4830044	21806,10877
25	117,7529874	260	142,2470126	21663,86176
26	116,9848535	260	143,0151465	21520,84661
27	116,2125717	260	143,7874283	21377,05919
28	115,4361196	260	144,5638804	21232,4953
29	114,6554746	260	145,3445254	21087,15078
30	113,8706142	260	146,1293858	20941,02139
31	113,0815155	260	146,9184845	20794,10291
32	112,2881557	260	147,7118443	20646,39106
33	111,4905117	260	148,5094883	20497,88158
34	110,6885605	260	149,3114395	20348,57014
35	109,8822787	260	150,1177213	20198,45242
36	109,071643	260	150,928357	20047,52406
37	108,2566299	260	151,7433701	19895,78069
38	107,4372157	260	152,5627843	19743,2179
39	106,6133767	260	153,3866233	19589,83128
40	105,7850889	260	154,2149111	19435,61637
41	104,9523284	260	155,0476716	19280,5687
42	104,115071	260	155,884929	19124,68377
43	103,2732924	260	156,7267076	18967,95706
44	102,4269681	260	157,5730319	18810,38403
45	101,5760738	260	158,4239262	18651,9601
46	100,7205846	260	159,2794154	18492,68069
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