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You plan to purchase a $270,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.00 percent. You will make a down payment of 20 percent of the purchase price.
(a) Calculate your monthly payments on the mortgage.
(b) Construct an amortization schedule for the mortgage. How much total interest is paid on this mortgage?

Answer :

jepessoa

Answer:

principal = $270,000 x 80% = $216,000

n = 15 years x 12 = 180

APR = 5%

using a loan calculator we can determine the monthly payment:

  • monthly payment = $1,708.11
  • 180 payments = $307,460.56
  • total Interest paid = $91,460.56

A) monthly payment $1,708.11

B) the amortization schedule is attached (PDF)

total interest paid $91,460.56

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