How much of the first payment is interest

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A person will buy a $250,000 home paying 20% down and financing the rest at the annual interest rate of 7% compounded monthly. He will make monthly payments for 30 years to pay off the loan.

a) Find the monthly payment.

b) How much of the first payment is interest?

c) How much is still owed after 10 years? There are 2 ways to do this in the tvm- solver.

d) How much of the 121st payment is interest?

e) If he refinances after 10 years at annual interest rate 6% compounded monthly, what is his new payment, assuming the loan is paid off in the remaining 20 years.

Reference no: EM13950026

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