Unit $15\mathrm{.}3$ Amortization with a financial calculator

$15.$ Assume you get a $25-$year $$130,000$ mortgage loan at $6\mathrm{.}5\%$ interest. Use your financial calculator to determine $($a$)$ your monthly payment; $($b$)$ interest, principal, and remaining balance for the first monthly payment; $($c$)$ balance after payment $77$; $($d$)$ interest for the entire $25-$year term; and $($e$)$ exact amount of the final payment.

$16.$ You get a $20-$year $$600,000$ mortgage loan at $7\mathrm{.}5\%$ interest. Use your financial calculator to determine your monthly payment. Then, assuming your first payment is due March $1,$ find interest, principal, and remaining balance for each of the first $3$ calendar$-$years.

For Problems $17-24,$ assume you get a $30-$year $$90,000$ mortgage loan at $7\mathrm{.}25\%$ interest.

$17.$ Calculate the monthly payment $($PI$).$

$18.$ Based on making $360$ payments of $$613\mathrm{.}96,$ what is the total interest over the $30$ years?

$19.$ Use your amortization registers to calculate $($a$)$ interest for the entire $30$ years and $($b$)$ balance after $360$ payments of $$613\mathrm{.}96.$

$20.$ Compare the total interest of Problem $18$ with the total interest of Problem $19.$ If there is a difference, explain which answer is correct, and why.

$21.$ After making payments for $10$ years, what is your balance?

$22.$ After $10$ years, you have made $\frac{1}{3}$ of the payments. Why isn't $\frac{1}{3}$ of the loan balance paid off?

$23.$ How many months will be left on the loan when the $\frac{1}{3}$ of the balance is repaid?

$24.$ How many years will it take for $\frac{1}{3}$ of the loan balance to be repaid?

$14.$

$15.$ Mo Pmt

Pmt $1,$ Int

Pmt $1,$ Princ

Pmt $1,$ Bal

Bal, Pmt $77$

Int all $25Yr$

Final Pmt

$16.$ Yr $1$ Int

Prin

Bal

Yr $2$ Int

Prin

Bal

Yr $3$ Int

Prin

Bal

$17.$

$18.$

$19.$ Int

Bal

$20.$

$21.$

$22.$

$23.$

$24.$

$58$

Homework Assignments