Question

Consider the first payment against a $200,000 mortgage that last for 25 years. Fixed repayments are made on a monthly basis. The first row of the amortization schedule is shown below. Payment # Payment Interest Debt Payment Balance 1 d 716.67 P1 bi 2 Calculate d, the fixed monthly payments that are made. Round your answer to the nearest cent.

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Answer 1

To calculate the fixed monthly payments for a $200,000 mortgage that lasts for 25 years, subtract the interest payment from the total payment in the first row of the amortization schedule.

Step-by-step explanation:

To calculate the fixed monthly payments for a $200,000 mortgage that lasts for 25 years, we can use the amortization schedule. In the first row of the schedule, the payment is represented by the variable d, and the payment balance is shown as P1. We need to calculate the value of d.

In this case, the monthly payment is made up of two components: the principal payment (P1) and the interest payment (bi). To find the value of d, we need to subtract the interest payment (bi) from the total payment (P1).

For example, if the interest payment (bi) is $100 and the total payment (P1) is $500, then the principal payment (P1 - bi) would be $400. Using this approach, we can calculate the value of d by subtracting the interest payment (bi) from the total payment (P1) in the first row of the amortization schedule.

Answer 2

b1=$200,000−$372.41=$199,627.59

$199,628