Question

In: Finance

You took out a fully amortizing 30 year mortgage with the initial balance of $199,755. This...

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).

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Expert Solution

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

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