You borrowed $683,000.00 to buy your first home. The interest rate is 4% compounded quarterly, and you will be making the payment twice a month. If the regular payment is 1,300.00, complete the first and last payment rows of the amortization schedule.
|Payment Number||Payment Amount||Interest Portion||Principal Portion||Balance|
Looking for an answer with a full explanation, the notation we use is
A = future value
P = principal
r = annual interest rate
n = number of compounding periods per year
t = time of investment/loan in years
m = monthly deposit
I = interest amount
bal = balance
*it wouldn't let me add a $ in front of the 1,300.00 but it is in dollars!
I can't find any questions like this online and neither can my teacher so any help is very much appreciated!
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This was a very challenging problem and it took em a while to answer it. Let me know if you need any clarifications, but I think everything is lear if you spend the time to understand it.
I'm confused about the Bn. If n=number of compounding periods each year how can it also equal the number of payments?
n is not the number of compounding periods. It is the number of payments.
my textbook refers to n as the number of compounding periods each year. Are you referring to n x t?
B_n is the balance you owe to the bank after n payments or n/2 months as you are making payments twice a month.
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I can answer this question but your offered bounty is a low. It would take about 30-40 minutes to write a good solution.
Thank you for letting me know! What is a reasonable bounty for this question? Keeping in mind I am a broke college student! But of course, I want to offer fair compensation!
Just think about how much time one may need to answer your questions and how much the time of a person qualified to answer your question is worth. It would give you an idea for a reasonable bounty.