3. Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down...

 

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3. Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of $120,000. They can amortize the balance at 4% for 30 years. a. calculate monthly payments. b. calculate equity they have in their house (that is, what is the sum of the down payment and amount paid on the loan) after 20 years? c. populate the following amortization table: Payment Number Monthly Payment Principal Interest Amount Paid on Loan 1 60 180 240 300 360 3. Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of $120,000. They can amortize the balance at 4% for 30 years. a. calculate monthly payments. b. calculate equity they have in their house (that is, what is the sum of the down payment and amount paid on the loan) after 20 years? c. populate the following amortization table: Payment Number Monthly Payment Principal Interest Amount Paid on Loan 1 60 180 240 300 360

Answer rating: 100% (QA)

a To calculate the monthly payments on the loan we can use the formula for an amortizing mortgage M P r 1 rn 1 rn 1 Where M Monthly payment P Principal amount loan amount r Monthly interest rate n Tot... View the full answer