Question

You took out a fully amortizing 30 year mortgage with the initial balance of $199,755. This mortgage has a fixed interest rate at 4%. After you completed two full years of monthly payments, how much have you paid toward principal? Round your answer to the nearest cent (e.g. if your answer is $7000.9873, enter 7000.99).

Answer 1

Ans $ 7178.84

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )^-n
	P =	(4%/12)*199755
		1 - (1 / (1 + 4%/12)^360))
	P =	665.85
		0.698204135
	P =	953.66
	Beginning Balance	Interest	Principal	Ending Balance
1	1,99,755.00	665.85	287.81	199467.19
2	1,99,467.19	664.89	288.77	1,99,178.42
3	1,99,178.42	663.93	289.73	1,98,888.69
4	1,98,888.69	662.96	290.7	1,98,597.99
5	1,98,597.99	661.99	291.67	1,98,306.32
6	1,98,306.32	661.02	292.64	1,98,013.68
7	1,98,013.68	660.05	293.62	1,97,720.06
8	1,97,720.06	659.07	294.59	1,97,425.47
9	1,97,425.47	658.08	295.58	1,97,129.89
10	$1,97,129.89	$657.10	$296.56	$1,96,833.33
11	$1,96,833.33	$656.11	$297.55	$1,96,535.78
12	$1,96,535.78	$655.12	$298.54	$1,96,237.24
13	$1,96,237.24	$654.12	$299.54	$1,95,937.70
14	$1,95,937.70	$653.13	$300.54	$1,95,637.17
15	$1,95,637.17	$652.12	$301.54	$1,95,335.63
16	$1,95,335.63	$651.12	$302.54	$1,95,033.09
17	$1,95,033.09	$650.11	$303.55	$1,94,729.54
18	$1,94,729.54	$649.10	$304.56	$1,94,424.98
19	$1,94,424.98	$648.08	$305.58	$1,94,119.40
20	$1,94,119.40	$647.06	$306.60	$1,93,812.80
21	$1,93,812.80	$646.04	$307.62	$1,93,505.19
22	$1,93,505.19	$645.02	$308.64	$1,93,196.54
23	$1,93,196.54	$643.99	$309.67	$1,92,886.87
24	$1,92,886.87	$642.96	$310.70	$1,92,576.16
	TOTAL	15709.02	7178.84