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Homework Help: Real Estate Finance

Posted by tmouery on Saturday, December 8, 2012 at 11:28am.

A $100,000, 30 year fixed rate mortgage at 8% interest has monthly principal and interest payments of $733.76. What is the loan balance after the first payment?

• Real Estate Finance - Henry, Monday, December 10, 2012 at 2:57pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 2:58pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 2:59pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 2:59pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 2:59pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 3:00pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 3:00pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

• Real Estate Finance - Henry, Monday, December 10, 2012 at 3:00pm

  1st Month:I = Po*r*t
  
  r = (8%/12) / 100% = 0.0066666 = Monthly
  % rate expressed as a decimal.
  
  t = 1 month.
  
  I = 100000*0.0066666*1 = $666.67.
  
  P = 733.76 - 666.67 = $67.09 = Amt applied to Po.
  
  Bal. = 100000 - 67.09 = $99,932.91.
  

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