Question

A lender originates a $90,000 mortgage at 9% APR interest, with monthly payments for 25 years. How much principal will be repaid during year 4 of the loan? (note: use the amortization schedule in your calculator )

-7,787

-1,376

-7,749

-4,617.57

-1,314

Answer 1

Ans -4,617.57

		P =	Regular Payments
		PV =	Loan Amount
		r =	rate of interest
		n =	no of periods
		P =	r (PV)
			1 - (1 + r )^-n
		P =	(9%/12)*90000
			1 - (1 / (1 + 9%/12)^300))
		P =	675
			0.893712166
		P =	755.28
	Beginning Balance	Interest	Principal	Ending Balance
1	90,000.00	675	80.28	89,919.72
2	89,919.72	674.4	80.88	89,838.84
3	89,838.84	673.79	81.49	89,757.36
4	89,757.36	673.18	82.1	89,675.26
5	89,675.26	672.56	82.71	89,592.55
6	89,592.55	671.94	83.33	89,509.22
7	89,509.22	671.32	83.96	89,425.26
8	89,425.26	670.69	84.59	89,340.67
9	89,340.67	670.06	85.22	89,255.45
10	89,255.45	669.42	85.86	89,169.59
11	89,169.59	668.77	86.5	89,083.09
12	89,083.09	668.12	87.15	88,995.93
Year #1 End
13	88,995.93	667.47	87.81	88,908.12
14	88,908.12	666.81	88.47	88,819.66
15	88,819.66	666.15	89.13	88,730.53
16	88,730.53	665.48	89.8	88,640.73
17	88,640.73	664.81	90.47	88,550.26
18	88,550.26	664.13	91.15	88,459.11
19	88,459.11	663.44	91.83	88,367.28
20	88,367.28	662.75	92.52	88,274.76
21	88,274.76	662.06	93.22	88,181.54
22	88,181.54	661.36	93.92	88,087.62
23	88,087.62	660.66	94.62	87,993.00
24	87,993.00	659.95	95.33	87,897.68
Year #2 End
25	87,897.68	659.23	96.04	87,801.63
26	87,801.63	658.51	96.76	87,704.87
27	87,704.87	657.79	97.49	87,607.38
28	87,607.38	657.06	98.22	87,509.16
29	87,509.16	656.32	98.96	87,410.20
30	87,410.20	655.58	99.7	87,310.50
31	87,310.50	654.83	100.45	87,210.05
32	87,210.05	654.08	101.2	87,108.85
33	87,108.85	653.32	101.96	87,006.89
34	87,006.89	652.55	102.73	86,904.16
35	86,904.16	651.78	103.5	86,800.67
36	86,800.67	651	104.27	86,696.39
Year #3 End
37	86,696.39	650.22	105.05	86,591.34
38	86,591.34	649.44	105.84	86,485.50
39	86,485.50	648.64	106.64	86,378.86
40	86,378.86	647.84	107.44	86,271.43
41	86,271.43	647.04	108.24	86,163.19
42	86,163.19	646.22	109.05	86,054.13
43	86,054.13	645.41	109.87	85,944.26
44	85,944.26	644.58	110.69	85,833.57
45	85,833.57	643.75	111.52	85,722.04
46	85,722.04	642.92	112.36	85,609.68
47	85,609.68	642.07	113.2	85,496.48
48	85,496.48	641.22	114.05	85,382.43
		TOTAL	4617.57