Solution-What amount of interest paid for two hundredth

What amount of interest paid for two hundredth payment

Reference no: EM132659716

A home mortgage on a house with the price of $375,000 is to be financed for 30 years at a nominal yearly interest rate of 3.75%. There are 360 monthly payments which have been calculated to be $1,736.68 per month.

Question 1: Derive an expression for the amount of principal that is paid for each payment. Use the following variables for this formula (show structured formula): P = Purchase value of the house
R = Monthly payment,
i = Interest rate per period
j = Payment period of interest ,
Pj =Amount of principal paid in period j,
Ij = Amount of interest paid in period j

Question 2: Derive an expression for the amount of interest that is paid for each payment. Use the following variables stated in part 1(show structured formula).

Question 3: What is the amount of the principal paid for the 200th payment?

Question 4: What is the amount of the interest paid for the 200th payment?

Reference no: EM132659716

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What amount of interest paid for two hundredth payment : Find What is the amount of the interest paid for the 200th payment? A home mortgage on a house with the price of $375,000 is to be financed for 30 years

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What amount of interest paid for two hundredth payment

Reference no: EM132659716

Reference no: EM132659716

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