Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%. Cost of home $ 560,000.00 Down payment 60,000 Term of mortgage 25 Rate of interest 6.38% Required: Please use the above information and the provided Amortization Chart to answer the below questions: (Use Table 15-1) What is the principal (loan)? $500,000 How many total payments on this mortgage? How much is their monthly payment? How much of the first monthly payment is going towards interest? How much of the first monthly payment is going towards principal? After the first payment, what would be the balance of the principal? TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Term in Years INTEREST 3½% 5% 5½% 6% 6½% 7% 7½% 8% 8½% 9% 9½% 10% 10½% 11% 10 9.89 10.61 10.86 11.11 11.36 11.62 11.88 12.14 12.40 12.67 12.94 13.22 13.50 13.78 12 8.52 9.25 9.51 9.76 10.02 10.29 10.56 10.83 11.11 11.39 11.67 11.96 12.25 12.54 15 7.15 7.91 8.18 8.44 8.72 8.99 9.28 9.56 9.85 10.15 10.45 10.75 11.06 11.37 17 6.52 7.29 7.56 7.84 8.12 8.40 8.69 8.99 9.29 9.59 9.90 10.22 10.54 10.86 20 5.80 6.60 6.88 7.17 7.46 7.76 8.06 8.37 8.68 9.00 9.33 9.66 9.99 10.33 22 5.44 6.20 6.51 6.82 7.13 7.44 7.75 8.07 8.39 8.72 9.05 9.39 9.73 10.08 25 5.01 5.85 6.15 6.45 6.76 7.07 7.39 7.72 8.06 8.40 8.74 9.09 9.45 9.81 30 4.50 5.37 5.68 6.00 6.33 6.66 7.00 7.34 7.69 8.05 8.41 8.78 9.15 9.53 35 3.99 5.05 5.38 5.71 6.05 6.39 6.75 7.11 7.47

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 12DQ

Please use the above information and the provided Amortization Chart to answer the below questions: (Use Table 15-1)

TABLE 15.1

Amortization table (mortgage principal and interest per $1,000)

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