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Math Help - Amortization Table

  1. #1
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    Amortization Table

    $269,900 House
    AIR (annual interest rate)-4.8%
    Down Payment- $53,980
    30 year mortgage

    Payment||||||||| Balance Before|||||||||||| Payment|||||||||||||Interest Payment|||||||||||||||||Principal Pay
    1 ||||||||||||||$215,920 |||||||||||||| $1,132.86 |||||||||||| $863.68 ||||||||||||||||||||| $269.18
    2 |||||||||||||||$215650.82 |||||||||||" " |||||||||||||||||$862.60 |||||||||||||||||| $270.26

    To find:
    Interest Payment I=P(i)
    Principal Payment Payment-Interest Payment

    I copied these notes from a friend, but I do not know how to get the payment number ($1,132,.86) I was told to multiply the
    mortgage by the interest to get it, but I did not recieve the correct answer
    Last edited by mr fantastic; May 22nd 2010 at 08:24 PM. Reason: Correct spelling in title.
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  2. #2
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    Are you sure youve got the details of the question right?

    i got a premium of 1119.522 when i did it.

    (method not shown , since it doesn't match the answer you say is correct)
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  3. #3
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    Yea, i doubled checked it, what is a premium
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  4. #4
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    Quote Originally Posted by Honorable24 View Post
    I copied these notes from a friend, but I do not know how to get the payment number ($1,132,.86) I was told to multiply the
    mortgage by the interest to get it, but I did not recieve the correct answer
    $1,132.86 is the CORRECT monthly payment, the 4.8% cpd monthly.

    A = Amount borrowed (215920)
    n = Number of months (360)
    i = Interest rate per month (.004)
    P = monthly Payment (?)
    Formula:
    P = Ai / [1 - 1/(1 + i)^n]

    P = 215920(.004) / (1 - 1/1.004^360) = 1132.85743....

    WHY are you trying to do this: homework?
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  5. #5
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    Quote Originally Posted by Wilmer View Post
    $1,132.86 is the CORRECT monthly payment, the 4.8% cpd monthly.

    A = Amount borrowed (215920)
    n = Number of months (360)
    i = Interest rate per month (.004)
    P = monthly Payment (?)
    Formula:
    P = Ai / [1 - 1/(1 + i)^n]

    P = 215920(.004) / (1 - 1/1.004^360) = 1132.85743....

    WHY are you trying to do this: homework?
    Thanks, instead of multiplying by (215920) my equation said to multiply by the down payment 53,980?
    Yea its homework
    Last edited by Honorable24; May 23rd 2010 at 01:19 PM.
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  6. #6
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    And how do I find:
    Total Interest Paided
    Mortgage Amount
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  7. #7
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    The total interest paid is the sum of the "interest payments" in your amortization table.

    The original mortgage amount you already worked out (215,920)


    The remaining mortgage amount is the original amount minus "principle payments" from your table.
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  8. #8
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    Quote Originally Posted by Honorable24 View Post
    Thanks, instead of multiplying by (215920) my equation said to multiply by the down payment 53,980?
    Well, that makes absolutely NO SENSE
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  9. #9
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    Quote Originally Posted by Honorable24 View Post
    And how do I find:
    Total Interest Paided
    Mortgage Amount
    Mortgage amount is the "net cash" borrowed.
    Total interest = total of payments less mortgage amount:
    1132.86 * 360 - 215920 = 191909.60
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