years, at an APR of 6.6%. The mortgage is to be repaid in 240 equal monthly installments. Today you have just made the 60th payment, and the remaining maturity of the mortgage is exactly 15 years.
What is the monthly mortgage payment that you negotiated back in 1997? (6 points)
Your reasoning: The equation for calculating a monthly payment is:
In this example, the principal = 250,000, interestrate=(0.066/12=.0055) since payments are made monthly, noofpayments=240.
What is the remaining principal outstanding? (6 points)
Remaining principal outstanding: $214,310.97
Your reasoning: Having calculated the payment in #1, we can construct an amoritzation table. Pmt = $1878.68 as calculated above, Int = Beg Bal * interestrate, Prin=Pmt-Int and End Bal = Beg Bal - Prin. The following amortization table illustrates the amortization for this case and the balance after payment no. 60 has been made:
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