This is one of the questions from my homework. I don't know how to do this . Can any one help me with this question? Thanks
"You have a $200,000 loan (mortgage) and it is
payable over 20 years on a monthly basis. The annual interest rate is 6%.
You will provide a list as indicated below.
Period Payment Principal Interest Balance
(month)
For this loan, there are 240 periods (monthly payments)
Each payment is the same amount.
What are the principal and interest portions of each payment for each month? "
2006-09-06 09:48:23 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Go to http://www.credit-yourself.com/loan-calculators.html and figure it out.
2006-09-06 09:52:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First you need to calcuate your monthly payment. Excel has a function for that as do financial calculators. You can also use future value of annuity tables or formula.
Once you have the payment, calcuate how much interest will be owed for the first month. That will be initial principal balance multiplied by interest rate divided by 12. Subtract the interest amount from the monthly payment and you will get the portion of the first payment that will go to reduce principal. Reduce the principal balance by that amount.
Then calcuate the interest owed for the second month using the same formula except substitute the new principal balance in place of the original principal balance. Calculate the amount of the first payment that will reduce principal (monthly interest will decrease over life of loan and amount of payment going to reduce principal will increase each month over life of loan).
Excel has a function that will calcuate the amount of principal and interest for any given payment in an amortization schedule. You can also use Excel to create an amortization table using formulas that you can copy and paste for the number of payments. Financial calcuatiors will also work.
2006-09-06 10:23:24 · answer #2 · answered by brian 2 · 0⤊ 0⤋
And thats the power of FINANCIAL AID ^_^ Jk As for my life, Im gonna have to avoid the haram. If loans are haram, then why take the loan. Im pretty sure there are ways to avoid taking loans. Im sorry Im not even going to a university anytime soon, so Im not quite sure about this topic but its something to definetly prepare because to my parents, education is a necesity (whether its Islamic or not, just saying) Ohohohh... You know what? Thats why its important for familys to have a seperate savings for education. Depending on who you are and if your gonna work, your gonna hafta need money unless theres financial aid or a full scholarship.
2016-03-27 00:34:53 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You need an amortization schedule because the amount principle applied each month will increase as the term is reduced. (Providing this is simple interest and not compound)
2006-09-06 10:07:51 · answer #4 · answered by Lisa E 1 · 0⤊ 0⤋
TY FOR THE 2 POINTS BUT I DO NOT DO HOME WORK . GO TO A LIBRARY OR GOOGLE IT BUDDY AND SPEND LESS TIME ON THE COMPUTER TRYING TO MOOCH ANSWERS .
2006-09-06 09:50:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
go to bankrate.com there is a mortgage calculator there and they have info on mortgages so you can explain your answer
2006-09-06 09:52:53 · answer #6 · answered by island3girl 6 · 0⤊ 0⤋
You can use this formula in Excel:
=pmt(.06/12,240,200000)
The answer is $1,432.86 per month.
2006-09-06 15:10:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋