Question

Mike bought a commercial property valued at $91 000 for $32 000.00 down and a mortgage amortized over 10 years. He makes equal payments due at the end of every quarter. Interest on the mortgage is?

Answer 1

The student's question is about calculating quarterly mortgage payments for a commercial property, but it lacks the necessary interest rate to provide an answer. With the interest rate and using financial tools or formulas, the payments can be calculated, representing real estate finance practices.

Step-by-step explanation:

The formula for calculating the monthly mortgage payment in an amortizing loan is given by:

`\[ P = (rPv)/(1 - (1 + r)^(-nt)) \]`

where:

`- \( P \)`is the monthly payment,

- \( r \) is the monthly interest rate,

`- \( Pv \)` is the present value or loan amount,

`- \( n \)` is the total number of payments (in months), and

`- \( t \)` is the number of years.

In this case, we know that
`\( Pv = $91,000 \), \( n = 10 \)` years, and payments are due quarterly, so
`\( t = 4 \` quarters in a year.

First, let's calculate the monthly interest rate
`(\( r \))` using the formula:

`\[ r = (annual\ interest\ rate)/(12 * 100) \]`

If you provide the annual interest rate, we can proceed with the calculation.

Once we have the monthly interest rate, we can use it to calculate the monthly payment and determine the interest portion of each payment.