Math.

1050 Mortgage Project

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In this proJect we will examine a home loan ormortgage. Assume that you have found a home for sale and have agreed to a purchase price of $201nfi)0 Down Payment You are going to make a 10% downpaymetrt on the house. Determine the amount of your downpayment and the balance to finance. DownPayment

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Part I: 30 year Morteage Monthly Payment: Calculate the monthly payment for a 30 year loan (rounding up to the nearest cent) by using the following formula. Show your work. IPMT is the monthly loan pa)rment, P is the mortgage ffiiount, r is the annual percent rate for the loan in decimal, and the number of years to pay offthe loan] For the 30 year loan use an annual interest rate of
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Monthly Payment for a 30 yearmofigae.

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Note that this monthlypayment covers only the interest and the principal on the loan It does not cover any insurance or taxes on the prcperty. Amortization Schedule: In order to summrize all the informdion regarding the annortization of a loan, consfruct a schedule that keeps track of the payment number, the principal paid, the interest, and the urpaid balance. A spreadsheet program is an excellent tool to develop an