Question

You plan to purchase a $200,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7 percent. You will make a down payment of 10 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.
b. Construct the amortization schedule for the first six payments.  

Construct the amortization schedule for the first six payments. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

	Amortization Schedule for first 6 payments (months) Month Beginning Loan Balance Payment Interest Principal Ending Loan Balance 1 2 3 4 5 6

Answer 1

let me know if you need any clarification ..

Ans a	Calculate your monthly payments on this mortgage.
	loan amount = 200000*90% =				180000
	we have to use financial calculator to compute monthly payment
	Put in calculator
	PV			-180000
	FV			0
	I		7%/12	0.5833%
	N		=15*12	180
	compute PMT			$1,617.89
	therefore monthly payment =			$1,617.89
Ans b
	Amortization Schedule for first 6 payments (months)
	Month	Beginning Loan Balance	Payment	Interest	Principal	Ending Loan Balance
	1	180,000.00	1,617.89	1,050.00	567.89	179,432.11
	2	179,432.11	1,617.89	1,046.69	571.20	178,860.91
	3	178,860.91	1,617.89	1,043.36	574.54	178,286.37
	4	178,286.37	1,617.89	1,040.00	577.89	177,708.48
	5	177,708.48	1,617.89	1,036.63	581.26	177,127.22
	6	177,127.22	1,617.89	1,033.24	584.65	176,542.58