www.cas.ua.edu

Download Report

Transcript www.cas.ua.edu 

MATH 110 Sec 8-5 Practice Exercises: Amortization
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer up to the nearest cent.)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
t=30
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
𝑛 = 12(30)
t=30
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
𝑛 = 12(30)
𝑛 = 360
t=30
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
0.0
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
0.05
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
0.05
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
1.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
12.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
-03
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
-03
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
0.05
𝑖=
12
𝑖 = 0.004166666667
𝑛 = 360
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
-03
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.1666666670.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.1666666671.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.1666666671.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.1666666670.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.0
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.00
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.004
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.0041
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.00416
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.004166
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.0041666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.00416666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.004166666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
0.0041666666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
1.0041666666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
1.0041666666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
1.0041666666
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.166666667 3.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
36.
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
360.
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.467743246
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
t=30
-03
4.467743246
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
t=30
-03
4.467743246
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
90000(4.467743246) = 𝑅
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.467743246
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.467743246
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
402096.8922 = 𝑅
t=30
-03
402096.8922
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
402096.8922 = 𝑅
t=30
-03
402096.8922
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
402096.8922 = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
402096.8922 = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
402096.8922 = 𝑅
t=30
-03
832.2585122
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
832.2585122
4.166666667
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
402096.8922 = 𝑅 832.2585122
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
402096.8922 = 𝑅 832.2585122
402096.8922
R=
832.2585122
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
402096.8922 = 𝑅 832.2585122
402096.8922
R=
= 483.1394168
832.2585122
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises:
Amortization
R=?
P=90000
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
m=12
years. (Round final answer
r=0.05 up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
t=30
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
402096.8922 = 𝑅 832.2585122
402096.8922
R=
= 483.1394168
832.2585122
R = $483.14
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Find the monthly payment R necessary to pay off a
loan of $90,000 at 5% compounded monthly for 30
years. (Round final answer up to the nearest cent.)
𝑃 1+𝑖
𝑛
=𝑅
1+𝑖 𝑛 βˆ’1
𝑖
90000 1 + .004166666667
90000(4.467743246) = 𝑅
-03
4.166666667 0.
𝑃 =present value, 𝑅 =periodic pmt
π‘Ÿ
𝑖 = π‘š and 𝑛 = π‘šπ‘‘
360
=𝑅
1+.004166666667 360 βˆ’1
.004166666667
4.467743246βˆ’1
.004166666667
402096.8922 = 𝑅 832.2585122
402096.8922
R=
= 483.1394168
832.2585122
R = $483.14
𝑛 = 360
𝑖 = 0.004166666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
8.9%
Payment
Interest
Paid
Paid on
Principal
Balance
$357.31
$42.20
$315.11
$5372.10
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
8.9%
Interest Rate
doesn’t change
Payment
Interest
Paid
Paid on
Principal
Balance
$357.31
$42.20
$315.11
$5372.10
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
8.9%
8.9%
Interest Rate
doesn’t change
Payment
Interest
Paid
Paid on
Principal
Balance
$357.31
$42.20
$315.11
$5372.10
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
8.9%
8.9%
Monthly payment
doesn’t change
Payment
Interest
Paid
Paid on
Principal
Balance
$357.31
$42.20
$315.11
$5372.10
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
Monthly payment
doesn’t change
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly m=12
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
0.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
0.0
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
0.08
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
0.089
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
0.089
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
1.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
12.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
7.416666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
7.416666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
π‘Ÿ
0.089
𝑖= =
= 0.007416666667
π‘š
12
7.416666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
So, 𝑖 =0.007416666667 is the monthly rate.
7.416666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
7.416666667 -03
𝑖 =0.007416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
𝑖 =0.007416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
𝑖 =0.007416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 =0.007416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 =0.007416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
𝑖 =0.007416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($5372.10)(0.007416666667)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
?
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
𝑖 =0.007416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($5372.10)(0.007416666667)= $39.84307142
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amount
of interestthe
paid
amortization schedule for the The
loan,
complete
is based
on the previous
next line of the schedule assuming
monthly
balance
payments. (Round answers to themonth’s
nearest
cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
Each row of the table represents one month so to calculate the
amount of interest paid each month, we must change the annual
interest rate to a monthly interest rate.
𝑖 =0.007416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($5372.10)(0.007416666667)= $39.84307142
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
If we subtract the interest paid
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
If we subtract the interest paid
from the payment
.
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
If we subtract the interest paid
from the payment, we get the
amount paid on principal.
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
If we subtract the interest paid
from the payment, we get the
amount paid on principal.
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
If we subtract the interest paid
from the payment, we get the
amount paid on principal.
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
If we subtract the interest paid
from the payment, we get the
amount paid on principal.
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$5372.10
–
$317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$5372.10
–
$317.47
= $5054.63
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
$5054.63
Finally, the new balance is just the
prior month’s balance minus the
amount paid on principal.
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$5372.10
–
$317.47
= $5054.63
MATH 110 Sec 8-5 Practice Exercises: Amortization
Given the annual interest rate and a line of the
amortization schedule for the loan, complete the
next line of the schedule assuming monthly
payments. (Round answers to the nearest cent.)
Annual
Interest Rate
Payment
Interest
Paid
Paid on
Principal
Balance
8.9%
$357.31
$42.20
$315.11
$5372.10
8.9%
$357.31
$39.84
$317.47
$5054.63
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04 $10.61 $6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04 $10.61 $6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04 $10.61 $6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04
$6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04
$6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
This tells us the monthly payment if we borrow $1000.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04
$6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
This tells us the monthly payment if we borrow $1000.
But a $92000 loan is like
92000
1000
= 92 loans of $1000.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04
$6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
This tells us the monthly payment if we borrow $1000.
But a $92000 loan is like
92000
1000
= 92 loans of $1000.
So, monthly payments on a $92000 loan are 92($10.61)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Table: Monthly payment on a $1000 loan
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04
$6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
This tells us the monthly payment if we borrow $1000.
But a $92000 loan is like
92000
1000
= 92 loans of $1000.
So, monthly payments on a $92000 loan are 92 $10.61 = $976.12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
0.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
0.0
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
0.05
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
0.05
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
1.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
12.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
4.166666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
4.166666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
π‘Ÿ
0.05
𝑖= =
= 0.00416666667
π‘š
12
4.166666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
So, 𝑖 = 0.00416666667 is the monthly rate.
4.166666667 -03
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
4.166666667 -03
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
?
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)= $383.3333333
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)= $383.3333333
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment
.
Complete the
schedule
below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$383.33 $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$383.33=$592.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$383.33=$592.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$592.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$592.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$592.79
= $91407.21
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$592.79
= $91407.21
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
Now we repeat this same process for Month 2.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember
that
Amy
has a monthly
of $976.12.
Each row of the
table
represents
one monthpayment
so to calculate
the
4.166666667 -03
amount
of interest
paidamortization
each month, we must
change the
annual
Complete
the
schedule
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
?
Remember, we’ve already found 𝑖 = 0.00416666667
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($91407.21)(0.004166666667)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($91407.21)(0.004166666667)= $380.8633141
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy
has a monthly
of $976.12.
The amount
of interestpayment
paid
based on the previous
Complete the isamortization
schedule below.
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)=
($91407.21)(0.004166666667)=
$383.3333333
$380.8633141
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment
.
Complete the
schedule
below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$380.86 $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$380.86=$595.26
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember thatIf Amy
has athe
monthly
of $976.12.
we subtract
interestpayment
paid
fromamortization
the payment, we get
the
Complete the
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid=$976.12–$380.86=$595.26
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91407.21
–
$595.26
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91407.21
–
$595.26
= $90811.95
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91407.21
–
$595.26
= $90811.95
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that
Amythehas
monthly
payment
of $976.12.
Finally,
newa balance
is just
the
balance minus
the
Complete prior
the month’s
amortization
schedule
below.
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
𝑖 = 0.00416666667
Now we repeat this same process for Month 3.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
𝑖 = 0.00416666667
Actually, why not pause the video and complete Month 3 yourself.
When you restart the video, you can check your work.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
$378.38 $597.74 $90214.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Amy has a 10 year mortgage for $92,000 at an annual
rate of 5%. Find her monthly payment (using table).
Remember that Amy has a monthly payment of $976.12.
Complete the amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$976.12
$976.12
$976.12
$383.33 $592.79 $91407.21
$380.86 $595.26 $90811.95
$378.38 $597.74 $90214.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
(Remember that her original monthly was $976.12.)
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her
loan
year,
mortgage,
What
you[10
should
keep$92,000
in mind is that
completing 5%].
this
(Remember
that
her original
monthlythe
was
$976.12.)
table
is EXACTLY
like completing
previous
table
that the
monthly payment
is now $150
more:
Completeexcept
her new
amortization
schedule
below.
$1126.12 ($976.12 + $150.00)
(Round answers
to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her
loan
year,
mortgage,
What
you[10
should
keep$92,000
in mind is that
completing 5%].
this
(Remember
that
her original
monthlythe
was
$976.12.)
table
is EXACTLY
like completing
previous
table
that the
monthly payment
is now $150
more:
Completeexcept
her new
amortization
schedule
below.
$1126.12 ($976.12 + $150.00)
(Round answers
to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
?
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)= $383.3333333
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($92000)(0.004166666667)= $383.3333333
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete
If we subtract the interest paid
theamortization
payment
.
herfrom
new
schedule
below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $383.33 $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $383.33 = $742.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $383.33 = $742.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$742.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$742.79
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$742.79
= $91257.21
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$92000.00
–
$742.79
= $91257.21
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
Now we repeat this same process for Month 2.
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Each row of the table represents one month so to calculate the
amount
of interest
paid
each
month, we must
change the
annual
Complete
Complete
herthe
new
amortization
amortization
schedule
schedule
below.
below.
interest rate to
a monthly
interest
rate.nearest cent.)
(Round
answers
to the
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
4.166666667 -03
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
?
Remember, we’ve already found 𝑖 = 0.00416666667
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($91257.21)(0.004166666667)
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($91257.21)(0.004166666667)= $380.2383142
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
The amount of interest paid
is based
on the previous
Complete her new
amortization
schedule
month’s
balance
(Round answers
to the
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = (π‘ƒπ‘Ÿπ‘–π‘œπ‘Ÿ π΅π‘Žπ‘™π‘Žπ‘›π‘π‘’)(𝑖)
πΌπ‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘ π‘ƒπ‘Žπ‘–π‘‘ = ($91257.21)(0.004166666667)= $380.2383142
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete
If we subtract the interest paid
theamortization
payment
.
herfrom
new
schedule
below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $357.31 – $39.84= $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $380.24 $317.47
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $380.24=$745.88
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
If we subtract the interest paid
theamortization
payment, we get the
Complete herfrom
new
schedule
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
Paid on Principal= Payment – Interest Paid= $1126.12 – $380.24=$745.88
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91257.21
–
$745.88
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91257.21
–
$745.88
= $90511.33
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90511.33
𝑖 = 0.00416666667
New Balance = Prior Month’s Balance – Paid on Principal
New Balance =
$91257.21
–
$745.88
= $90511.33
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Finally, the new balance is just the
prior
month’s
balance minusschedule
the
Complete her
new
amortization
paid
(Roundamount
answers
toon
theprincipal.
nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
below.
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90511.33
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90511.33
𝑖 = 0.00416666667
Now we repeat this same process for Month 3.
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90511.33
𝑖 = 0.00416666667
Actually, why not pause the video and complete Month 3 yourself.
When you restart the video, you can check your work.
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90511.33
$377.13 $748.99 $89762.34
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
What if Amy decided to pay an extra $150 a month to
pay off her loan [10 year, $92,000 mortgage, 5%].
Complete her new amortization schedule below.
(Round answers to the nearest cent.)
Pmt #
Monthly
Payment
Interest
Paid
Paid on
Principal
Balance
$92,000
Month 1
Month 2
Month 3
1
2
3
$1126.12
$1126.12
$1126.12
$383.33 $742.79 $91257.21
$380.24 $745.88 $90811.95
$377.13 $748.99 $89762.34
𝑖 = 0.00416666667
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
INTEREST PAID = TOTAL PAID – AMT BORROWED
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
INTEREST PAID = TOTAL PAID – AMT BORROWED
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
INTEREST PAID = TOTAL PAID – AMT BORROWED
INTEREST PAID = $12402.72 – $11000.00
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
INTEREST PAID = TOTAL PAID – AMT BORROWED
INTEREST PAID = $12402.72 – $11000.00
= $1402.72
MATH 110 Sec 8-5 Practice Exercises: Amortization
Franklin’s used car cost $13000. After his down
payment of $2000, he financed the rest at 6% for 4
years. If the monthly payment on this loan is $258.39,
how much interest will Franklin pay over the term of
the loan? (Round final answer to nearest cent.)
We know the monthly payment, R, so we don’t have to
calculate it ourselves!
𝑅 =$258.39 (monthly payment)
He paid $258.39 a month for 4 yrs (12 x 4 = 48 months).
So, his TOTAL PAID = $258.39 x 48 = $12402.72
The car cost $13000 but he paid $2000 down, so he only had to borrow $11000.
INTEREST PAID = TOTAL PAID – AMT BORROWED
INTEREST PAID = $12402.72 – $11000.00
= $1402.72
MATH 110 Sec 8-5 Practice Exercises: Amortization
Use the table below for a 20 year adjustable-rate
mortgage of $173,000 with a beginning interest rate
of 5%, increasing 1% in year two and 2% in year three.
What is the initial monthly payment?
MONTHLY PAYMENT ON A $1000 LOAN
Annual
Number of years for the loan
Rate
3
4
10
20
30
4%
$29.53 $22.58 $10.12 $6.06 $4.77
5%
$29.97 $23.04 $10.61 $6.60 $5.37
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
MATH 110 Sec 8-5 Practice Exercises: Amortization
Make a rough
Use the table below for a 20 year adjustable-rate
estimate of
mortgage of $173,000 with a beginning interest rate
the monthly
of 5%, increasing 1% in year two and 2% in year three. payment for
What is the initial monthly payment?
year 3 by
MONTHLY PAYMENT ON A $1000 LOAN
recalculating
Annual
Number of years for the loan
payments on
Rate
3
4
10
20
30
the original
4%
$29.53 $22.58 $10.12 $6.06 $4.77
amount for 20
5%
$29.97 $23.04 $10.61 $6.60 $5.37
years using the
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
new interest
rate.
MATH 110 Sec 8-5 Practice Exercises: Amortization
Neal and Lilly took out a 30 year, $130000 mortgage at a
12% annual rate. After 20 years they refinanced the unpaid
balance of $92,705 at a 10% annual rate. Find the monthly
payments on the original loan and on the new loan and then
find the total amount saved on interest by refinancing.
MONTHLY PAYMENT ON A $1000 LOAN
Annual
Number of years for the loan
Rate
3
4
10
20
30
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
10% $32.27 $25.36 $13.22 $9.65 $8.78
12% $33.21 $26.33 $14.35 $11.01 $10.29
MATH 110 Sec 8-5 Practice Exercises: Amortization
Neal and Lilly took out a 30 year, $130000 mortgage at a
12% annual rate. After 20 years they refinanced the unpaid
balance of $92,705 at a 10% annual rate. Find the monthly
payments on the original loan and on the new loan and then
find the total amount saved on interest by refinancing.
ORIGINAL
MONTHLY PAYMENT ON A $1000 LOAN
Annual
Number of years for the loan
Rate
3
4
10
20
30
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
10% $32.27 $25.36 $13.22 $9.65 $8.78
12% $33.21 $26.33 $14.35 $11.01 $10.29
MATH 110 Sec 8-5 Practice Exercises: Amortization
Neal and Lilly took out a 30 year, $130000 mortgage at a
12% annual rate. After 20 years they refinanced the unpaid
balance of $92,705 at a 10% annual rate. Find the monthly
payments on the original loan and on the new loan and then
find the total amount saved on interest by refinancing.
NEW
MONTHLY PAYMENT ON A $1000 LOAN
Annual
Number of years for the loan
Rate
3
4
10
20
30
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
10% $32.27 $25.36 $13.22 $9.65 $8.78
12% $33.21 $26.33 $14.35 $11.01 $10.29
MATH 110 Sec 8-5 Practice Exercises: Amortization
Neal and Lilly took out a 30 year, $130000 mortgage at a
12% annual rate. After 20 years they refinanced the unpaid
balance of $92,705 at a 10% annual rate. Find the monthly
payments on the original loan and on the new loan and then
find the total amount saved on interest by refinancing.
AMT SAVED
MONTHLY PAYMENT ON A $1000 LOAN
Annual
Number of years for the loan
Rate
3
4
10
20
30
6%
$30.42 $23.49 $11.10 $7.16 $6.00
8%
$31.34 $24.41 $12.13 $8.36 $7.34
10% $32.27 $25.36 $13.22 $9.65 $8.78
12% $33.21 $26.33 $14.35 $11.01 $10.29