Exam 13: Loan Amortization: Mortgages

Jessica bought an $1,150 television set for 25% down and the balance to be paid with interest at 11.25% compounded monthly in six equal monthly payments. Construct the full amortization schedule for the debt. Calculate the total interest paid.

Sam and Jane have a $250,000 mortgage amortized over 20 years at 5.75% compounded quarterly. After 10 years, they decided to reduce the principal amount of their mortgage by $40,000. Calculate their new monthly payment.

How much principal will be repaid by the 17^th monthly payment of $750 on a $22,000 loan at 15% compounded monthly?

A $60,000 loan at 12% compounded semi-annually is to be repaid by monthly payments of $1,000. -How long will it take to pay off this loan?

The owner of a property listed at $195,000 is considering two offers. Mr. and Mrs. Sharpe are offering $191,000 cash. The Conlins' "full-price" offer consists of $65,000 cash and a mortgage back to the vendor for $130,000 at a rate of 7.5% compounded semi-annually with payments of $1,000 per month for a five-year term. If current five-year rates are 8.5% compounded semi-annually, what is the equivalent cash value of the Conlins' offer? Which offer should be accepted?

A loan of $20,000 is to be repaid by equal semi-annual payments over three years at 7.5% compounded semi-annually. Construct an amortization schedule for the loan. How much interest is paid in total?

A mortgage loan of $132,000 at 6% compounded semi-annually is to be amortized over 25 years by equal monthly payments. What will the balance outstanding be after three years?

A loan of $45,000 at 8% compounded quarterly is to be amortized over four years with equal payments made at the end of every three months. How much interest will be included in the first payment?