| Module 05 Written Assignment - Construction of an Amortization Schedule |
| Complete items a through d below related to the mortgage information provided. |
| You plan to purchase a $750,000 home using a 30-year mortgage obtained from a local commercial bank. |
| The mortgage rate offered is 5.25 percent and requires a 20 percent down payment. |
| a. | What are the monthly payments on the mortgage? |
| b. | Construct the amortization schedule for the first 10 payments. |
| Month | Beginning Loan Balance | Payment | Interest | Principal | Ending Loan Balance |
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| 9 |
| 10 |
| c. | If the rate offered was 7.50 percent, what would the monthly payments be? |
| d. | If a 15-year mortgage with a 4.50 percent rate and 20 percent down payment was obtained for the purchase, what would the monthly payments be? |
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05WrittenAssignment_ConstructionofanAmortizationSchedule.xlsx
