Assume that an investor has shs. 500,000 and wants to invest this amount in the variable...

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Finance

Assume that an investor has shs. 500,000 and wants toinvest this amount in the variable rate payment mortgage at 5.5%original interest rate, with a 30 year term and monthly payments.In the contract the interest is meant to be adjusted upwards at theend of each year at the rate of 0.5% per year. Calculate themonthly payments for the 1st - 4th years of the loan.

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4.2 Ratings (584 Votes)

Annual Amortization Schedule Beginning Balance Interest Principal Ending Balance 1 50000000 246455 1548685 48451317 2 48451317 238692 1556448 46894873 3 46894873 230893 1564247 45330629 4 45330629 223053 1572087 43758545 Date Beginning Balance Interest Principal Ending Balance 1 72019 24000000 77200 35451 23964549 2 82019 23964549 77086 35565 23928984 3 92019 23928984 76972 35679 23893304 4 102019 23893304 76857 35794 23857510 5 112019 23857510 76742 35909 23821601 6 122019 23821601 76626 36025 23785576 7 12020 23785576 76510 36141 23749435 8 22020 23749435 76394 36257 23713178 9 32020 23713178 76277 36374 23676804 10 42020 23676804 76160 36491 23640313 11 52020 23640313 76043 36608 23603705 12 62020 23603705 75925 36726 23566979 year 1 end 13 72020 23566979 75807 36844 23530136 14 82020 23530136 75689 36962 23493173 15 92020 23493173 75570 37081 23456092 16 102020 23456092 75450 37201 23418891 17 112020 23418891 75331 37320 23381571 18 122020 23381571 75211 37440 23344130 19 12021 23344130 75090 37561 23306570 20 22021 23306570 74969 37682 23268888 21 32021 23268888 74848 37803 23231085 22 42021 23231085 74727 37924 23193161 23 52021 23193161 74605 38046 23155114 24 62021 23155114 74482 38169 23116945 year 2 end 25 72021 23116945 74360 38291 23078654 26 82021 23078654 74236 38415 23040239 27 92021 23040239 74113 38538 23001701 28 102021 23001701 73989 38662 22963039 29 112021 22963039 73864 38787 22924252 30 122021 22924252 73740 38911 22885341 31 12022 22885341 73615 39036 22846304 32 22022 22846304 73489 39162 22807142 33 32022 22807142 73363 39288 22767854 34 42022 22767854 73237 39414 22728439 35 52022 22728439 73110 39541 22688898 36 62022 22688898 72983 39668 22649230 year 3 end 37 See Answer

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