Professor Cole bought an investment property for $400,000. He took out a standard 30 year fixed mortgage for $311000 at a nominal rate of 3.875% per year, with uniform monthly payments starting one month from the date of closing. He paid all of the loans closing costs. What were his monthly mortgage payments? $
Exactly 5 years to the day he sold the property for $475,000. Assuming that he had already made his mortgage payment that day what was the remaining balance of the mortgage? $
How much of his final payment was interest? $
How much of his final payment went toward principle? $
(note his final payment was his 60th payment, because he sold the property after 5 years)