You take out a $200,000 mortgage for 30 years at 6%. What is

your monthly payment? Solve Below 200000 Fill out the ammortization

table to answer the following questions. 30 What is the principle

and interest on the 1st payment? 6% What is the principle and

interest on the 12th payment? How much interest will you pay over

the 30 years?

Monthly payment of a mortgage loan can be computed by using the

following formula

Monthly Payment =P*r *(1+r)^n/(1+r)^n-1

Where, P =principal amount,r = rate of interest per month, n =

no of monthly payments, now substitute give data in the above

formula, we get

=$ 200,000*.06/12*(1+.06/12)^30*12 /(1+.06/12)^30*12 -1

Monthly payment =$ 1,199.10

principle and interest on the 1st payment is bifurcate the

monthly payament of $ 1,199.10 into principal and interest

Intererst for the first [email protected]% on 200000

=$1,000(200000*6%/12)

Principal amonut in the first installment =$ 199.10

interest that you have pay over the 30

years

Total payments to be made over the 30 years =$ 431,676.38

(1199.10*360)

Less: Principal amount =$ 200,000

interest that you have pay over the 30 years =$

231,676.38

principle and interest on the 12th payment is $ 210.33
and 988.77 respectively Monthly payment schedule for the first year |
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Month | Total Mortgage Payment | Payment on Interest | Payment on Principal | Principal Balance |

$1,199.10 | 6.00% | $200,000.00 | ||

1 | $1,199.10 | $1,000.00 | $199.10 | $199,800.90 |

2 | $1,199.10 | $999.00 | $200.10 | $199,600.80 |

3 | $1,199.10 | $998.00 | $201.10 | $199,399.71 |

4 | $1,199.10 | $997.00 | $202.10 | $199,197.60 |

5 | $1,199.10 | $995.99 | $203.11 | $198,994.49 |

6 | $1,199.10 | $994.97 | $204.13 | $198,790.36 |

7 | $1,199.10 | $993.95 | $205.15 | $198,585.21 |

8 | $1,199.10 | $992.93 | $206.17 | $198,379.04 |

9 | $1,199.10 | $991.90 | $207.21 | $198,171.83 |

10 | $1,199.10 | $990.86 | $208.24 | $197,963.59 |

11 | $1,199.10 | $989.82 | $209.28 | $197,754.31 |

12 | $1,199.10 | $988.77 | $210.33 | $197,543.98 |