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Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes an APR of 4%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. In the tenth year of your mortgage (months 109 through 120), what would be the total dollar amount of the interest paid? Do not round at intermediate steps in your calculation.

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Expert Solution

Mortgage loan amount $300,000
Monthly interest       0.003333 (4/12)%= 0.33%
Number of months of loan 180 (15*12)
Monthly payment $2,219.06 Using PMT function of excel with Rate=(4/12)%,Nper=180,PV=-300000
Using IPMT function Using PPMT function
Per=N, Nper=180, PV=-300000 Per=N, Nper=180, PV=-300000
N A B C D E=A-D
Month Beginning Monthly Interest Principal Ending
Balance Payment Balance
1 $300,000 $2,219.06 $1,000.00 $1,219.06 $298,780.94
2 $298,780.94 $2,219.06 $995.94 $1,223.13 $297,557.81
3 $297,557.81 $2,219.06 $991.86 $1,227.20 $296,330.60
4 $296,330.60 $2,219.06 $987.77 $1,231.30 $295,099.31
5 $295,099.31 $2,219.06 $983.66 $1,235.40 $293,863.91
6 $293,863.91 $2,219.06 $979.55 $1,239.52 $292,624.39
7 $292,624.39 $2,219.06 $975.41 $1,243.65 $291,380.74
8 $291,380.74 $2,219.06 $971.27 $1,247.79 $290,132.95
9 $290,132.95 $2,219.06 $967.11 $1,251.95 $288,880.99
10 $288,880.99 $2,219.06 $962.94 $1,256.13 $287,624.87
11 $287,624.87 $2,219.06 $958.75 $1,260.31 $286,364.55
12 $286,364.55 $2,219.06 $954.55 $1,264.52 $285,100.04
13 $285,100.04 $2,219.06 $950.33 $1,268.73 $283,831.31
14 $283,831.31 $2,219.06 $946.10 $1,272.96 $282,558.35
15 $282,558.35 $2,219.06 $941.86 $1,277.20 $281,281.15
16 $281,281.15 $2,219.06 $937.60 $1,281.46 $279,999.69
17 $279,999.69 $2,219.06 $933.33 $1,285.73 $278,713.95
18 $278,713.95 $2,219.06 $929.05 $1,290.02 $277,423.94
19 $277,423.94 $2,219.06 $924.75 $1,294.32 $276,129.62
20 $276,129.62 $2,219.06 $920.43 $1,298.63 $274,830.99
21 $274,830.99 $2,219.06 $916.10 $1,302.96 $273,528.03
22 $273,528.03 $2,219.06 $911.76 $1,307.30 $272,220.72
23 $272,220.72 $2,219.06 $907.40 $1,311.66 $270,909.06
24 $270,909.06 $2,219.06 $903.03 $1,316.03 $269,593.03
25 $269,593.03 $2,219.06 $898.64 $1,320.42 $268,272.61
26 $268,272.61 $2,219.06 $894.24 $1,324.82 $266,947.79
27 $266,947.79 $2,219.06 $889.83 $1,329.24 $265,618.55
28 $265,618.55 $2,219.06 $885.40 $1,333.67 $264,284.88
29 $264,284.88 $2,219.06 $880.95 $1,338.11 $262,946.77
30 $262,946.77 $2,219.06 $876.49 $1,342.57 $261,604.19
31 $261,604.19 $2,219.06 $872.01 $1,347.05 $260,257.14
32 $260,257.14 $2,219.06 $867.52 $1,351.54 $258,905.60
33 $258,905.60 $2,219.06 $863.02 $1,356.05 $257,549.56
34 $257,549.56 $2,219.06 $858.50 $1,360.57 $256,188.99
35 $256,188.99 $2,219.06 $853.96 $1,365.10 $254,823.89
36 $254,823.89 $2,219.06 $849.41 $1,369.65 $253,454.24
37 $253,454.24 $2,219.06 $844.85 $1,374.22 $252,080.02
38 $252,080.02 $2,219.06 $840.27 $1,378.80 $250,701.23
39 $250,701.23 $2,219.06 $835.67 $1,383.39 $249,317.83
40 $249,317.83 $2,219.06 $831.06 $1,388.00 $247,929.83
41 $247,929.83 $2,219.06 $826.43 $1,392.63 $246,537.20
42 $246,537.20 $2,219.06 $821.79 $1,397.27 $245,139.93
43 $245,139.93 $2,219.06 $817.13 $1,401.93 $243,737.99
44 $243,737.99 $2,219.06 $812.46 $1,406.60 $242,331.39
45 $242,331.39 $2,219.06 $807.77 $1,411.29 $240,920.10
46 $240,920.10 $2,219.06 $803.07 $1,416.00 $239,504.10
47 $239,504.10 $2,219.06 $798.35 $1,420.72 $238,083.39
48 $238,083.39 $2,219.06 $793.61 $1,425.45 $236,657.93
49 $236,657.93 $2,219.06 $788.86 $1,430.20 $235,227.73
50 $235,227.73 $2,219.06 $784.09 $1,434.97 $233,792.76
51 $233,792.76 $2,219.06 $779.31 $1,439.75 $232,353.00
52 $232,353.00 $2,219.06 $774.51 $1,444.55 $230,908.45
53 $230,908.45 $2,219.06 $769.69 $1,449.37 $229,459.08
54 $229,459.08 $2,219.06 $764.86 $1,454.20 $228,004.88
55 $228,004.88 $2,219.06 $760.02 $1,459.05 $226,545.83
56 $226,545.83 $2,219.06 $755.15 $1,463.91 $225,081.92
57 $225,081.92 $2,219.06 $750.27 $1,468.79 $223,613.13
58 $223,613.13 $2,219.06 $745.38 $1,473.69 $222,139.44
59 $222,139.44 $2,219.06 $740.46 $1,478.60 $220,660.84
60 $220,660.84 $2,219.06 $735.54 $1,483.53 $219,177.32
61 $219,177.32 $2,219.06 $730.59 $1,488.47 $217,688.84
62 $217,688.84 $2,219.06 $725.63 $1,493.43 $216,195.41
63 $216,195.41 $2,219.06 $720.65 $1,498.41 $214,697.00
64 $214,697.00 $2,219.06 $715.66 $1,503.41 $213,193.59
65 $213,193.59 $2,219.06 $710.65 $1,508.42 $211,685.17
66 $211,685.17 $2,219.06 $705.62 $1,513.45 $210,171.73
67 $210,171.73 $2,219.06 $700.57 $1,518.49 $208,653.23
68 $208,653.23 $2,219.06 $695.51 $1,523.55 $207,129.68
69 $207,129.68 $2,219.06 $690.43 $1,528.63 $205,601.05
70 $205,601.05 $2,219.06 $685.34 $1,533.73 $204,067.32
71 $204,067.32 $2,219.06 $680.22 $1,538.84 $202,528.48
72 $202,528.48 $2,219.06 $675.09 $1,543.97 $200,984.51
73 $200,984.51 $2,219.06 $669.95 $1,549.12 $199,435.40
74 $199,435.40 $2,219.06 $664.78 $1,554.28 $197,881.12
75 $197,881.12 $2,219.06 $659.60 $1,559.46 $196,321.66
76 $196,321.66 $2,219.06 $654.41 $1,564.66 $194,757.00
77 $194,757.00 $2,219.06 $649.19 $1,569.87 $193,187.13
78 $193,187.13 $2,219.06 $643.96 $1,575.11 $191,612.02
79 $191,612.02 $2,219.06 $638.71 $1,580.36 $190,031.66
80 $190,031.66 $2,219.06 $633.44 $1,585.62 $188,446.04
81 $188,446.04 $2,219.06 $628.15 $1,590.91 $186,855.13
82 $186,855.13 $2,219.06 $622.85 $1,596.21 $185,258.92
83 $185,258.92 $2,219.06 $617.53 $1,601.53 $183,657.38
84 $183,657.38 $2,219.06 $612.19 $1,606.87 $182,050.51
85 $182,050.51 $2,219.06 $606.84 $1,612.23 $180,438.28
86 $180,438.28 $2,219.06 $601.46 $1,617.60 $178,820.68
87 $178,820.68 $2,219.06 $596.07 $1,622.99 $177,197.68
88 $177,197.68 $2,219.06 $590.66 $1,628.40 $175,569.28
89 $175,569.28 $2,219.06 $585.23 $1,633.83 $173,935.45
90 $173,935.45 $2,219.06 $579.78 $1,639.28 $172,296.17
91 $172,296.17 $2,219.06 $574.32 $1,644.74 $170,651.42
92 $170,651.42 $2,219.06 $568.84 $1,650.23 $169,001.20
93 $169,001.20 $2,219.06 $563.34 $1,655.73 $167,345.47
94 $167,345.47 $2,219.06 $557.82 $1,661.25 $165,684.23
95 $165,684.23 $2,219.06 $552.28 $1,666.78 $164,017.44
96 $164,017.44 $2,219.06 $546.72 $1,672.34 $162,345.10
97 $162,345.10 $2,219.06 $541.15 $1,677.91 $160,667.19
98 $160,667.19 $2,219.06 $535.56 $1,683.51 $158,983.68
99 $158,983.68 $2,219.06 $529.95 $1,689.12 $157,294.57
100 $157,294.57 $2,219.06 $524.32 $1,694.75 $155,599.82
101 $155,599.82 $2,219.06 $518.67 $1,700.40 $153,899.42
102 $153,899.42 $2,219.06 $513.00 $1,706.07 $152,193.35
103 $152,193.35 $2,219.06 $507.31 $1,711.75 $150,481.60
104 $150,481.60 $2,219.06 $501.61 $1,717.46 $148,764.14
105 $148,764.14 $2,219.06 $495.88 $1,723.18 $147,040.96
106 $147,040.96 $2,219.06 $490.14 $1,728.93 $145,312.03
107 $145,312.03 $2,219.06 $484.37 $1,734.69 $143,577.34
108 $143,577.34 $2,219.06 $478.59 $1,740.47 $141,836.87
109 $141,836.87 $2,219.06 $472.79 $1,746.27 $140,090.59
110 $140,090.59 $2,219.06 $466.97 $1,752.10 $138,338.50
111 $138,338.50 $2,219.06 $461.13 $1,757.94 $136,580.56
112 $136,580.56 $2,219.06 $455.27 $1,763.80 $134,816.77
113 $134,816.77 $2,219.06 $449.39 $1,769.67 $133,047.09
114 $133,047.09 $2,219.06 $443.49 $1,775.57 $131,271.52
115 $131,271.52 $2,219.06 $437.57 $1,781.49 $129,490.03
116 $129,490.03 $2,219.06 $431.63 $1,787.43 $127,702.60
117 $127,702.60 $2,219.06 $425.68 $1,793.39 $125,909.21
118 $125,909.21 $2,219.06 $419.70 $1,799.37 $124,109.84
119 $124,109.84 $2,219.06 $413.70 $1,805.36 $122,304.48
120 $122,304.48 $2,219.06 $407.68 $1,811.38 $120,493.10
121 $120,493.10 $2,219.06 $401.64 $1,817.42 $118,675.68
122 $118,675.68 $2,219.06 $395.59 $1,823.48 $116,852.20
123 $116,852.20 $2,219.06 $389.51 $1,829.56 $115,022.64
124 $115,022.64 $2,219.06 $383.41 $1,835.65 $113,186.99
125 $113,186.99 $2,219.06 $377.29 $1,841.77 $111,345.21
126 $111,345.21 $2,219.06 $371.15 $1,847.91 $109,497.30
127 $109,497.30 $2,219.06 $364.99 $1,854.07 $107,643.23
128 $107,643.23 $2,219.06 $358.81 $1,860.25 $105,782.97
129 $105,782.97 $2,219.06 $352.61 $1,866.45 $103,916.52
130 $103,916.52 $2,219.06 $346.39 $1,872.68 $102,043.85
131 $102,043.85 $2,219.06 $340.15 $1,878.92 $100,164.93
132 $100,164.93 $2,219.06 $333.88 $1,885.18 $98,279.75
133 $98,279.75 $2,219.06 $327.60 $1,891.46 $96,388.28
134 $96,388.28 $2,219.06 $321.29 $1,897.77 $94,490.51
135 $94,490.51 $2,219.06 $314.97 $1,904.10 $92,586.42
136 $92,586.42 $2,219.06 $308.62 $1,910.44 $90,675.98
137 $90,675.98 $2,219.06 $302.25 $1,916.81 $88,759.16
138 $88,759.16 $2,219.06 $295.86 $1,923.20 $86,835.96
139 $86,835.96 $2,219.06 $289.45 $1,929.61 $84,906.35
140 $84,906.35 $2,219.06 $283.02 $1,936.04 $82,970.31
141 $82,970.31 $2,219.06 $276.57 $1,942.50 $81,027.82
142 $81,027.82 $2,219.06 $270.09 $1,948.97 $79,078.84
143 $79,078.84 $2,219.06 $263.60 $1,955.47 $77,123.38
144 $77,123.38 $2,219.06 $257.08 $1,961.99 $75,161.39
145 $75,161.39 $2,219.06 $250.54 $1,968.53 $73,192.87
146 $73,192.87 $2,219.06 $243.98 $1,975.09 $71,217.78
147 $71,217.78 $2,219.06 $237.39 $1,981.67 $69,236.11
148 $69,236.11 $2,219.06 $230.79 $1,988.28 $67,247.83
149 $67,247.83 $2,219.06 $224.16 $1,994.90 $65,252.93
150 $65,252.93 $2,219.06 $217.51 $2,001.55 $63,251.37
151 $63,251.37 $2,219.06 $210.84 $2,008.23 $61,243.15
152 $61,243.15 $2,219.06 $204.14 $2,014.92 $59,228.23
153 $59,228.23 $2,219.06 $197.43 $2,021.64 $57,206.59
154 $57,206.59 $2,219.06 $190.69 $2,028.38 $55,178.21
155 $55,178.21 $2,219.06 $183.93 $2,035.14 $53,143.08
156 $53,143.08 $2,219.06 $177.14 $2,041.92 $51,101.16
157 $51,101.16 $2,219.06 $170.34 $2,048.73 $49,052.43
158 $49,052.43 $2,219.06 $163.51 $2,055.56 $46,996.87
159 $46,996.87 $2,219.06 $156.66 $2,062.41 $44,934.47
160 $44,934.47 $2,219.06 $149.78 $2,069.28 $42,865.19
161 $42,865.19 $2,219.06 $142.88 $2,076.18 $40,789.01
162 $40,789.01 $2,219.06 $135.96 $2,083.10 $38,705.91
163 $38,705.91 $2,219.06 $129.02 $2,090.04 $36,615.86
164 $36,615.86 $2,219.06 $122.05 $2,097.01 $34,518.85
165 $34,518.85 $2,219.06 $115.06 $2,104.00 $32,414.85
166 $32,414.85 $2,219.06 $108.05 $2,111.01 $30,303.83
167 $30,303.83 $2,219.06 $101.01 $2,118.05 $28,185.78
168 $28,185.78 $2,219.06 $93.95 $2,125.11 $26,060.67
169 $26,060.67 $2,219.06 $86.87 $2,132.19 $23,928.48
170 $23,928.48 $2,219.06 $79.76 $2,139.30 $21,789.18
171 $21,789.18 $2,219.06 $72.63 $2,146.43 $19,642.74
172 $19,642.74 $2,219.06 $65.48 $2,153.59 $17,489.15
173 $17,489.15 $2,219.06 $58.30 $2,160.77 $15,328.39
174 $15,328.39 $2,219.06 $51.09 $2,167.97 $13,160.42
175 $13,160.42 $2,219.06 $43.87 $2,175.20 $10,985.22
176 $10,985.22 $2,219.06 $36.62 $2,182.45 $8,802.78
177 $8,802.78 $2,219.06 $29.34 $2,189.72 $6,613.06
178 $6,613.06 $2,219.06 $22.04 $2,197.02 $4,416.04
179 $4,416.04 $2,219.06 $14.72 $2,204.34 $2,211.69
180 $2,211.69 $2,219.06 $7.37 $2,211.69 $0.00
Payment in the 10th Year
Month Beginning Monthly Interest Principal Ending
Balance Payment Balance
109 $141,836.87 $2,219.06 $472.79 $1,746.27 $140,090.59
110 $140,090.59 $2,219.06 $466.97 $1,752.10 $138,338.50
111 $138,338.50 $2,219.06 $461.13 $1,757.94 $136,580.56
112 $136,580.56 $2,219.06 $455.27 $1,763.80 $134,816.77
113 $134,816.77 $2,219.06 $449.39 $1,769.67 $133,047.09
114 $133,047.09 $2,219.06 $443.49 $1,775.57 $131,271.52
115 $131,271.52 $2,219.06 $437.57 $1,781.49 $129,490.03
116 $129,490.03 $2,219.06 $431.63 $1,787.43 $127,702.60
117 $127,702.60 $2,219.06 $425.68 $1,793.39 $125,909.21
118 $125,909.21 $2,219.06 $419.70 $1,799.37 $124,109.84
119 $124,109.84 $2,219.06 $413.70 $1,805.36 $122,304.48
120 $122,304.48 $2,219.06 $407.68 $1,811.38 $120,493.10
TOTAL $26,628.77 $5,284.99 $21,343.77
Total dollar amount of interest paid $5,284.99


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