# Math - Accounting

Consider a home mortgage of 125,000 at a fixed APR of 9% for 30 years.
- calculate the monthly payment
- determine the total amount paid over the term of the loan
- Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
Q: what is the monthly payment
Q: The total payment over the term of the loan is:
Q: Of the total payment over the term of the loan ___% is paid toward the principal and ___% is paid toward interest.

1. 0
2. 2
1. Assumption on 9%
I will assume that the rate is 9% per annum, compounded monthly, so ...
i = .09/12 = .0075
n = 30(12) = 360
Paym= ?

125000 = paym( 1 - 1.0075^-360)/.0075
find paym.

"The total payment over the term of the loan is"
I suppose they want you to multiply the payment by 360.
This is an invalid calculation, since you can't just add up amounts of money that are not on the same spot on a time graph.
But that is the answer they probably expect, so multiply your payment by 360

"Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. "
I have the same problem with that question. I suspect they want you to subtract the following:
360(payment) - 125000 , giving you the interest

A totally invalid calculation for the same reason as before.

1. 0
posted by Reiny

## Similar Questions

1. ### Finance

If a home buyer purchases a home in 2006 for \$225,000 with a 10% down payment using a 30 year fixed mortgage rate at 6.5% and 3.5% closing costs added to the original mortgage, compute the following: a) the original amount of the
2. ### Finance Math

Quicken Loans reports a 30-year fixed rate mortgage at 4.9%, a 20-year mortgage at 4.75% and a and a 15-year mortgage at 4.50%. If you want to finance a \$218,000 home, how much interest will you save if you refinance your loan for
3. ### Finance

A mortgage broker is offering a \$225,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 2.5 percent APR interest rate. After the second year, the mortgage
4. ### Finance

A bank is willing to give you a Rs1,000,000 home mortgage at 12% interest, compounded semiannually. The loan will be amortised over 25 years, but the interest rate is fixed for only the first 5 years. What is the monthly mortgage
5. ### Math

You have a \$250,000 mortgage. The 30- year fixed rate is 8.5%. You have had your house for ten years. You have 20 years remaining on your mortgage. The new 15-year mortgage rate is 5.5%. 1) What is your mortgage payment, principal
6. ### accounting

You have just purchased a house and have obtained a 30-year, \$200,000 mortgage with an interest rate of 10 percent. Required: a. what is your annual payment? b. Assuming you bought the house on Jan. 1st, what is the principle
7. ### math

The price of a home is \$120,000. The bank requires a 10% down payment and two points of closing. The cost of the home is financed with 30-year fixed-rate mortgage at 8.5%. Find the total cost of interest over 30 years.
8. ### Finance

Could someone tell me how to calculate this in excel? You are applying for a 30-year, fixed-rate (APR 6.50%), monthly-payment-required mortgage loan for a house that sells for \$80,000 today. The mortgage bank will ask you for 20%
9. ### finance

You take out a 25-year \$210,000 mortgage loan with an APR of 12% and monthly payments. In 16 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
10. ### Finance

You take out a 30-year \$100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
11. ### Math

You have a \$200,000 mortgage. You have had the house for one year. The rate is 7.5% fixed for 30 years. Rates have come down and you are thinking of refinancing at the new rate of 6%. 1) What is your mortgage payment and interest

More Similar Questions