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You plan to purchase a $250,000 house using a 15-year mortgage obtained from your bank. The...

You plan to purchase a $250,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.00 percent. You will make a down payment of 20 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.

b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation of monthly payment of mortgage and amortization schedule. Further, formula reference also provide for better understanding of calculations

Formula reference -

a. Monthly payment on this mortgage would be $ 1,976.98

b. Total Interest paid on this mortgage would be $ 105,857.53

jeff jeffy answered 1 year ago
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