You have obtained a mortgage for $100,000 with annual interest rate of 6% that is to...

You have obtained a mortgage for $100,000 with annual interest rate of 6% that is to be paid over 30 years (interest is compounded monthly). Your monthly payment is $600.

Complete the first few rows of the loan amortization table (show how you got the number):

Months	Loan balance	Loan payment	Interest	Principal
1
2
3

Solutions

Expert Solution

Monthly interest rate = 6%/12 = 0.5%

Amortization Schedule
Month	Beginning Amount	Payment	Interest Repayment of principal	Principal Portion	Ending Balance
A	B	C	*D = B0.5%**	E = C-D	F = B-E
1	100000	600	500	100	99900
2	99900	600	499.5	100.5	99799.5
3	99799.5	600	498.9975	101.0025	99698.4975
4	99698.4975	600	498.4924875	101.5075125	99596.99
5	99596.99	600	497.9849499	102.0150501	99494.9749
6	99494.9749	600	497.4748747	102.5251253	99392.4498
7	99392.4498	600	496.9622491	103.0377509	99289.4121
8	99289.4121	600	496.4470603	103.5529397	99185.8591
9	99185.8591	600	495.9292956	104.0707044	99081.7884
10	99081.7884	600	495.4089421	104.5910579	98977.1974
11	98977.1974	600	494.8859868	105.1140132	98872.0833
12	98872.0833	600	494.3604167	105.6395833	98766.4438
13	98766.4438	600	493.8322188	106.1677812	98660.276
14	98660.276	600	493.3013799	106.6986201	98553.5774
15	98553.5774	600	492.7678868	107.2321132	98446.3452
16	98446.3452	600	492.2317262	107.7682738	98338.577
17	98338.577	600	491.6928849	108.3071151	98230.2699
18	98230.2699	600	491.1513493	108.8486507	98121.4212
19	98121.4212	600	490.607106	109.392894	98012.0283
20	98012.0283	600	490.0601416	109.9398584	97902.0885

jeff jeffy answered 1 year ago

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