Question

You have just applied, and have been approved for a $250,000 mortgage. The rate quoted to you by the lender is 5.0% for a 30 year fixed mortgage. Use the table provided to determine how much of your first month’s payment goes towards the principal.

Answer 1

Answer:

300

Step-by-step explanation:

Given that mortgage amount is 250000 and interest rate = 5%

Tenure = 30 years

We have to find the first month payment towards principal

For this we use amortisation table

Enter 250000 for loan amount, and r = 5

Then period you enter 30 years

Mortgage Summary

$1,342.05

Monthly Payment

$233,139

Total Interest Paid  

$483,139

Total of 360 Payments

Feb, 2049

Pay-off Date

Out of EMI 1342.05, principal would be adjusted with 300 and interest remaining 1042.05

Note that in amortization initial stages principal would be less and interest more but afterwards the reverse

Answer is 300

Answer 2

Whats the table look like ?