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A mortgage loan is made for $80,000 at 6 percent interest for 25 years. Payments are...

A mortgage loan is made for $80,000 at 6 percent interest for 25 years. Payments are to be made monthly. Calculate.

1. Total monthly interest and principal payments through year 10.

2. What would the breakdown of interest and principal be during month 50?

Solutions

Expert Solution

Following amortization table has been created

Total Monthly interest till year 10 = 42934.52
Interest till month 50 = 19,232.87
Principal till Month 50 = 6539.18

   Beginning Balance= 80,000   PMT =PMT(6%/12,25*12,-80000)   Interest part of PMT=6%/12*Beginning Principal   Principal part of PMT= PMT-Interest   Ending Balance= Beginning balance-Principal part of PMT
1   80000.00   515.4411   400.00   115.44   79884.56
2   79884.56   515.4411   399.42   116.02   79768.54
3   79768.54   515.4411   398.84   116.60   79651.94
4   79651.94   515.4411   398.26   117.18   79534.76
5   79534.76   515.4411   397.67   117.77   79416.99
6   79416.99   515.4411   397.08   118.36   79298.64
7   79298.64   515.4411   396.49   118.95   79179.69
8   79179.69   515.4411   395.90   119.54   79060.15
9   79060.15   515.4411   395.30   120.14   78940.01
10   78940.01   515.4411   394.70   120.74   78819.27
11   78819.27   515.4411   394.10   121.34   78697.92
12   78697.92   515.4411   393.49   121.95   78575.97
13   78575.97   515.4411   392.88   122.56   78453.41
14   78453.41   515.4411   392.27   123.17   78330.23
15   78330.23   515.4411   391.65   123.79   78206.44
16   78206.44   515.4411   391.03   124.41   78082.03
17   78082.03   515.4411   390.41   125.03   77957.00
18   77957.00   515.4411   389.79   125.66   77831.35
19   77831.35   515.4411   389.16   126.28   77705.06
20   77705.06   515.4411   388.53   126.92   77578.15
21   77578.15   515.4411   387.89   127.55   77450.60
22   77450.60   515.4411   387.25   128.19   77322.41
23   77322.41   515.4411   386.61   128.83   77193.58
24   77193.58   515.4411   385.97   129.47   77064.11
25   77064.11   515.4411   385.32   130.12   76933.99
26   76933.99   515.4411   384.67   130.77   76803.21
27   76803.21   515.4411   384.02   131.43   76671.79
28   76671.79   515.4411   383.36   132.08   76539.71
29   76539.71   515.4411   382.70   132.74   76406.96
30   76406.96   515.4411   382.03   133.41   76273.56
31   76273.56   515.4411   381.37   134.07   76139.49
32   76139.49   515.4411   380.70   134.74   76004.74
33   76004.74   515.4411   380.02   135.42   75869.32
34   75869.32   515.4411   379.35   136.09   75733.23
35   75733.23   515.4411   378.67   136.77   75596.45
36   75596.45   515.4411   377.98   137.46   75459.00
37   75459.00   515.4411   377.29   138.15   75320.85
38   75320.85   515.4411   376.60   138.84   75182.01
39   75182.01   515.4411   375.91   139.53   75042.48
40   75042.48   515.4411   375.21   140.23   74902.25
41   74902.25   515.4411   374.51   140.93   74761.32
42   74761.32   515.4411   373.81   141.63   74619.69
43   74619.69   515.4411   373.10   142.34   74477.35
44   74477.35   515.4411   372.39   143.05   74334.29
45   74334.29   515.4411   371.67   143.77   74190.52
46   74190.52   515.4411   370.95   144.49   74046.03
47   74046.03   515.4411   370.23   145.21   73900.82
48   73900.82   515.4411   369.50   145.94   73754.89
49   73754.89   515.4411   368.77   146.67   73608.22
50   73608.22   515.4411   368.04   147.40   73460.82
51   73460.82   515.4411   367.30   148.14   73312.68
52   73312.68   515.4411   366.56   148.88   73163.80
53   73163.80   515.4411   365.82   149.62   73014.18
54   73014.18   515.4411   365.07   150.37   72863.81
55   72863.81   515.4411   364.32   151.12   72712.69
56   72712.69   515.4411   363.56   151.88   72560.81
57   72560.81   515.4411   362.80   152.64   72408.18
58   72408.18   515.4411   362.04   153.40   72254.77
59   72254.77   515.4411   361.27   154.17   72100.61
60   72100.61   515.4411   360.50   154.94   71945.67
61   71945.67   515.4411   359.73   155.71   71789.96
62   71789.96   515.4411   358.95   156.49   71633.47
63   71633.47   515.4411   358.17   157.27   71476.19
64   71476.19   515.4411   357.38   158.06   71318.13
65   71318.13   515.4411   356.59   158.85   71159.28
66   71159.28   515.4411   355.80   159.64   70999.64
67   70999.64   515.4411   355.00   160.44   70839.19
68   70839.19   515.4411   354.20   161.25   70677.95
69   70677.95   515.4411   353.39   162.05   70515.90
70   70515.90   515.4411   352.58   162.86   70353.04
71   70353.04   515.4411   351.77   163.68   70189.36
72   70189.36   515.4411   350.95   164.49   70024.86
73   70024.86   515.4411   350.12   165.32   69859.55
74   69859.55   515.4411   349.30   166.14   69693.40
75   69693.40   515.4411   348.47   166.97   69526.43
76   69526.43   515.4411   347.63   167.81   69358.62
77   69358.62   515.4411   346.79   168.65   69189.97
78   69189.97   515.4411   345.95   169.49   69020.48
79   69020.48   515.4411   345.10   170.34   68850.14
80   68850.14   515.4411   344.25   171.19   68678.95
81   68678.95   515.4411   343.39   172.05   68506.91
82   68506.91   515.4411   342.53   172.91   68334.00
83   68334.00   515.4411   341.67   173.77   68160.23
84   68160.23   515.4411   340.80   174.64   67985.59
85   67985.59   515.4411   339.93   175.51   67810.08
86   67810.08   515.4411   339.05   176.39   67633.69
87   67633.69   515.4411   338.17   177.27   67456.41
88   67456.41   515.4411   337.28   178.16   67278.25
89   67278.25   515.4411   336.39   179.05   67099.20
90   67099.20   515.4411   335.50   179.95   66919.26
91   66919.26   515.4411   334.60   180.84   66738.41
92   66738.41   515.4411   333.69   181.75   66556.66
93   66556.66   515.4411   332.78   182.66   66374.01
94   66374.01   515.4411   331.87   183.57   66190.44
95   66190.44   515.4411   330.95   184.49   66005.95
96   66005.95   515.4411   330.03   185.41   65820.54
97   65820.54   515.4411   329.10   186.34   65634.20
98   65634.20   515.4411   328.17   187.27   65446.93
99   65446.93   515.4411   327.23   188.21   65258.72
100   65258.72   515.4411   326.29   189.15   65069.57
101   65069.57   515.4411   325.35   190.09   64879.48
102   64879.48   515.4411   324.40   191.04   64688.44
103   64688.44   515.4411   323.44   192.00   64496.44
104   64496.44   515.4411   322.48   192.96   64303.48
105   64303.48   515.4411   321.52   193.92   64109.55
106   64109.55   515.4411   320.55   194.89   63914.66
107   63914.66   515.4411   319.57   195.87   63718.79
108   63718.79   515.4411   318.59   196.85   63521.95
109   63521.95   515.4411   317.61   197.83   63324.11
110   63324.11   515.4411   316.62   198.82   63125.29
111   63125.29   515.4411   315.63   199.81   62925.48
112   62925.48   515.4411   314.63   200.81   62724.67
113   62724.67   515.4411   313.62   201.82   62522.85
114   62522.85   515.4411   312.61   202.83   62320.02
115   62320.02   515.4411   311.60   203.84   62116.18
116   62116.18   515.4411   310.58   204.86   61911.32
117   61911.32   515.4411   309.56   205.88   61705.44
118   61705.44   515.4411   308.53   206.91   61498.52
119   61498.52   515.4411   307.49   207.95   61290.57
120   61290.57   515.4411   306.45   208.99   61081.58

Please Discuss in case of Doubt

Best of Luck. God Bless
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jeff jeffy answered 1 year ago
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