LOAN AMORTIZATION

[Shraddha]

.A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.

• Find the value of the mortgage on their house? (1 mark)
• Find the value of the monthly payment? (3 marks)

II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount? (6 marks)

 

[Deleted member 4993]

.A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.

• Find the value of the mortgage on their house? (1 mark)
• Find the value of the monthly payment? (3 marks)

II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount? (6 marks)

What methods/equations have you been taught to calculate future value and amortization problems?

Please show us what you have tried and exactly where you are stuck.

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