Using the Loan Amortization Chart To access this chart, go to the Student Edition of the textbook's Online Learning Centre. In the navigation bar, select "Chapter 14" in the drop-down box. In the list of resources for Chapter 14, select "Links in Textbook" and then click on the link named "Mortgage Payoff Chart." Over the full amortization period, the chart plots graphs of both the mortgage balance and the cumulative interest paid. Note the "Definitions" section below the chart.
You can select from a variety of accelerated payment and prepayment options. If you enter a nonzero "Prepayment amount", the chart presents additional graphs for the balance and cumulative interest under the prepayment plan. (Round prepayment amounts to the nearest dollar before entry.) These graphs enable you to see how much the prepayments reduce both the cumulative interest cost and the time required to pay off the loan. Use this chart ( and its associated report) to answer the following problems.
In Parts (b) through (f), round the answer to the nearest 0.1 year. Also note that the reduction (referred to as "savings") in the total interest paid is over the life of the loan.
A $100,000 mortgage loan at 7.2% compounded semiannually requires monthly payments based on a 25- year amortization. Assuming that the interest rate does not change for the entire 25 years, complete the following table.

Question

Using the Loan Amortization Chart To access this chart, go to the Student Edition of the textbook's Online Learning Centre. In the navigation bar, select "Chapter 14" in the drop-down box. In the list of resources for Chapter 14, select "Links in Textbook" and then click on the link named "Mortgage Payoff Chart." Over the full amortization period, the chart plots graphs of both the mortgage balance and the cumulative interest paid. Note the "Definitions" section below the chart.
You can select from a variety of accelerated payment and prepayment options. If you enter a nonzero "Prepayment amount", the chart presents additional graphs for the balance and cumulative interest under the prepayment plan. (Round prepayment amounts to the nearest dollar before entry.) These graphs enable you to see how much the prepayments reduce both the cumulative interest cost and the time required to pay off the loan. Use this chart ( and its associated report) to answer the following problems.
In Parts (b) through (f), round the answer to the nearest 0.1 year. Also note that the reduction (referred to as "savings") in the total interest paid is over the life of the loan. 
A $100,000 mortgage loan at 7.2% compounded semiannually requires monthly payments based on a 25- year amortization. Assuming that the interest rate does not change for the entire 25 years, complete the following table.

Quizplus · Accepted Answer

The Answer of Using the Loan Amortization Chart To access this chart, go to the Student Edition of the textbook's Online Learning Centre. In the navigation bar, select "Chapter 14" in the drop-down box. In the list of resources for Chapter 14, select "Links in Textbook" and then click on the link named "Mortgage Payoff Chart." Over the full amortization period, the chart plots graphs of both the mortgage balance and the cumulative interest paid. Note the "Definitions" section below the chart.
You can select from a variety of accelerated payment and prepayment options. If you enter a nonzero "Prepayment amount", the chart presents additional graphs for the balance and cumulative interest under the prepayment plan. (Round prepayment amounts to the nearest dollar before entry.) These graphs enable you to see how much the prepayments reduce both the cumulative interest cost and the time required to pay off the loan. Use this chart ( and its associated report) to answer the following problems.
In Parts (b) through (f), round the answer to the nearest 0.1 year. Also note that the reduction (referred to as "savings") in the total interest paid is over the life of the loan. 
A $100,000 mortgage loan at 7.2% compounded semiannually requires monthly payments based on a 25- year amortization. Assuming that the interest rate does not change for the entire 25 years, complete the following table.

Using the Loan Amortization Chart to Access This Chart, Go