Consider the first payment against a $200,000 mortgage that last for 25 years. Fixed repayments are made on a monthly basis. The first row of the amortization schedule is shown below. Payment # Payment Interest Debt Payment Balance 1 d 716.67 P1 bi 2 Calculate d, the fixed monthly payments that are made. Round your answer to the nearest cent.

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batolisis batolisis · Answer 1 · 2021-09-06T23:08:32+02:00

Calculating the value of d and the fixed monthly payments against a $200,000 mortgage that last for 25 years

Given that :

Present value ( PV ) $200,000

Period = 25 years

Total period ( n ) = 25 * 12 = 300

also PMT is done monthly

∴ monthly interest rate = ( 716.67 / 200,000 ) * 100 = 0.358% ( r )

i) Next step : Calculate the value of PMT

using the equation below

[tex]PMT = [\frac{PV}{\frac{1-(1+r)^{-n} }{r} } ][/tex] where : PV = $200,000, r = 0.358% , n = 300

input values into equation

∴ d = PMT = $1088.63

ii) Fixed monthly payments

= d - 716.67

= 1088.63 - 716.67 = $372

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maryshahjanyan maryshahjanyan · Answer 2 · 2022-02-21T02:31:47+01:00

Answer:

b1=$200,000−$372.41=$199,627.59

$199,628

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