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Consider a 30-year, traditional mortgage on a $200,000 property. With 30% down payment and a 4%...

Consider a 30-year, traditional mortgage on a $200,000 property. With 30% down payment and a 4% APR. Mortgage payments are made monthly. What is the 214th payment?

Expert Solution

EMI = Loan Amount / PAVf (r%, n)

PVAF = Sum (PVF(r%, n))

Loan = Purchase Price * ( 1 - Down Payment % )

= $ 200000 * (1 - 0.3)

= $ 200000 * 0.7

= $ 140000

= $ 140,000 / PVAF ( 0.3333%, 360 )

= $ 140000 / 209.4612

= $ 668.38

Loan Amortization:

Month	Opening Bal	Instalment	Int	Principal Repay	Closing Balance
209	$ 79,602.54	$ 668.38	$ 265.34	$ 403.04	$ 79,199.50
210	$ 79,199.50	$ 668.38	$ 264.00	$ 404.38	$ 78,795.11
211	$ 78,795.11	$ 668.38	$ 262.65	$ 405.73	$ 78,389.38
212	$ 78,389.38	$ 668.38	$ 261.30	$ 407.08	$ 77,982.30
213	$ 77,982.30	$ 668.38	$ 259.94	$ 408.44	$ 77,573.86
214	$ 77,573.86	$ 668.38	$ 258.58	$ 409.80	$ 77,164.06
215	$ 77,164.06	$ 668.38	$ 257.21	$ 411.17	$ 76,752.89

From Above One, 214th Payment:

EMI = 668.38

Int = 258.58

Principla Repay = 409.80

Outstanding Bal = 77164.06

jeff jeffy answered 1 year ago

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