you are given the following information on a mortgage. Fill in the blanks. You must show all calculations.

you are given the following information on a mortgage. Fill in the blanks. You must show all calculations.

 

 

 

I sent this before and you didn’t give me a clear answer.

 

 

 

 

answer:

Answer

second year.

P = ( A * r ) / ( 1 – (1+r)-N)

=(118472 * 0.058 / 12 ) / (1- (1+0.058 / 12 ) ^ – 348)

= 572.6147 / 0.81303

= 704

Loan Balance Formula after second year

120,000 * ( (1+ 0.058 / 12 ) ^ 360 – (1+ 0.058 / 12 ) ^ 24    / ( (1+ 0.058 / 12 ) ^ 360 – 1)

= 120,000 * ( 5.67 – 1.1226) / 4.67

= 116,850

third year

P = ( A * r ) / ( 1 – (1+r)-N)

=(116850 * 0.0605 / 12 ) / (1- (1+0.0605 / 12 ) ^ – 336)

= 589.12 / 0.81543

= 722.47 is monthly payment

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