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How much principal and interest will be paid respectively

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Reference no: EM132680277

You plan to borrow $400,000 at a 5% annual interest rate for your mortgage. The terms require you to amortize the loan with 30 year equal end-of-month payments (i.e., totally 30*12=360 payments).

Question (1) In Year 3 (i.e., payment #25 - Payment #36), how much principal and interest will be paid respectively?

Question (2) In Year 10, how much principal and interest will be paid respectively?

Question (3) In Year 20, how much principal and interest will be paid respectively?

Question (4) In Year 30, how much principal and interest will be paid respectively?

Hint: Since it's monthly payment, you need to convert the annual interest rate into monthly interest rate when you calculate (i.e., 5%/12=0.4167)

Reference no: EM132680277

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