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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: 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.
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?
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