Question

a. The monthly payment is ​$
  
741.86.
​(Do not round until the final answer. Then round to the nearest cent as​ needed.)
Part 2
The total interest for the loan is ​$
  
38046.40.
​(Use the answer from part a to find this answer. Round to the nearest cent as​ needed.)
Part 3
b. Fill out the loan amortization schedule for the first three months of the mortgage below.
Payment Number
Interest
Principal
Loan Balance
1
​$
  
723.31
​$
  
18.55
​$
  
139981.45
2
​$
  
enter your response here
​$
  
enter your response here
​$
  
enter your response here
3
​$
  
enter your response here
​$
  
enter your response here
​$
  
enter your response here
​(Use the answer from part a to find these answers. Round to the nearest cent as​ needed.)

Answer 1

Using the given monthly payment $741.86 and the first-month row, the monthly interest rate = 723.31 / 140000 = 0.005166507142857143.

Calculations (rounded to cents):
- Payment 2:
- Interest = 139,981.45 * 0.005166507142857143 = $723.22
- Principal = 741.86 − 723.22 = $18.64
- Balance = 139,981.45 − 18.64 = $139,962.81

- Payment 3:
- Interest = 139,962.81 * 0.005166507142857143 = $723.12
- Principal = 741.86 − 723.12 = $18.74
- Balance = 139,962.81 − 18.74 = $139,944.07

Filled schedule:
1: Interest $723.31, Principal $18.55, Balance $139,981.45
2: Interest $723.22, Principal $18.64, Balance $139,962.81
3: Interest $723.12, Principal $18.74, Balance $139,944.07