Answered: How much is their monthly payment?…

Business

Finance

How much is their monthly payment? Monthly payment $ Complete the table for the breakdown of the first payment.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 24PROB

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

1. Jason and Coretta agreed to pay $559,000 for a four-bedroom colonial home with a $70,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.
How much is their monthly payment?
Monthly payment $
Complete the table for the breakdown of the first payment.

Portion to ---

Payment number 1

Interest $_______________

Principal $______________

Balance of loan outstanding $________________________

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