Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please show your working and formula (if possible)

Please show your working and formula (If possible) -------------------------- Suppose you take out an $840,000, 20-year mortgage loan...

Free

50.1K

Verified Solution

Question

Finance

Please show your working and formula (Ifpossible)

--------------------------

Suppose you take out an $840,000, 20-year mortgage loan to buy aresidential apartment. The interest rate on the mortgage is 4.65%per annum, and payments are required to be made annually at the endof each year.

Question:

Construct a mortgage amortisation table showing loanbalance at the beginning of each period, annual repayment amount,interest payment, the amortisation of the loan and the loan balancefor each year.

Answer & Explanation Solved by verified expert
4.4 Ratings (964 Votes)

Sl. Beginning Interest Principal Repayment amountt Balance
1 840000 39060 26358.02 65418.02 813641.98
2 813641.98 37834.35 27583.67 65418.02 786058.32
3 786058.32 36551.71 28866.31 65418.02 757192.01
4 757192.01 35209.43 30208.59 65418.02 726983.43
5 726983.43 33804.73 31613.29 65418.02 695370.14
6 695370.14 32334.71 33083.31 65418.02 662286.84
7 662286.84 30796.34 34621.68 65418.02 627665.16
8 627665.16 29186.43 36231.59 65418.02 591433.57
9 591433.57 27501.66 37916.36 65418.02 553517.22
10 553517.22 25738.55 39679.47 65418.02 513837.75
11 513837.75 23893.46 41524.56 65418.02 472313.2
12 472313.2 21962.56 43455.46 65418.02 428857.74
13 428857.74 19941.88 45476.14 65418.02 383381.6
14 383381.6 17827.24 47590.78 65418.02 335790.83
15 335790.83 15614.27 49803.75 65418.02 285987.08
16 285987.08 13298.4 52119.62 65418.02 233867.47
17 233867.47 10874.84 54543.18 65418.02 179324.29
18 179324.29 8338.58 57079.44 65418.02 122244.86
19 122244.86 5684.39 59733.63 65418.02 62511.23
20 62511.23 2906.77 62511.25 65418.02 0

Interest = Previous balance * interest rate

Principal = Yearly payment - interest

Balance = Previous balance - principal
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Please show your working and formula (Ifpossible)--------------------------Suppose you take out an $840,000, 20-year mortgage loan to buy aresidential apartment. The interest rate on the mortgage is 4.65%per annum, and payments are required to be made annually at the endof each year.Question:Construct a mortgage amortisation table showing loanbalance at the beginning of each period, annual repayment amount,interest payment, the amortisation of the loan and the loan balancefor each year.

Other questions asked by students

Q

Substance H has maximum absorbance at 550 nm; Substance M has maximum absorbance at 650 nm. A...

Chemistry
Q

Background information In this lab, you will test the hypothesis that the evolution of skull shape...

Biology
Q

A series RCL circuit has a resonant frequency of 1470 Hz. When operating at a frequency other...

Physics
Q

The Data The real estate markets, around the United States, have been drastically changing since the housing...

Basic Math
Q

Explain and Demonstrate three types of movement Demonstrate 2 Repetitions Only vements from Lesson Four...

Biology
Q

Evidence that supports placing green algae and plants in the same phylogenetic group includes A...

Biology
Q

Sketch the graph of the given function y 5 sinx Choose the correct graph below...

Basic Math
Q

Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in...

Accounting
Q

Hello, can you solve it before Thursday? The following adjusted trial...

Accounting
Q

1. (2.5 points) Does the following project have a positive or negative rate of return?...

Accounting
Q

For the year just ended, a company reports net income of $4,300,000. There are 900,000...

Accounting
Q

The Company sold some of its plant assets during the year. The original cost of...

Accounting