Using the PMT function in Excel with 3% per period for 17 periods with a present value of $1800, Boreal's solution of $136.71 is correct to the penny. Ikleyn's solution of $82.72 only provides a total amount to the lender of $1406.26 after 17 payments. It would be a rare mortgage company indeed that could continue to do business in this fashion for very long.
As a check, see the following amortization table:
Qtr Pmt Interest Principal Red Balance $1,800.00 1 $(136.71) $54.00 $(82.71) $1,717.29 2 $(136.71) $51.52 $(85.20) $1,632.09 3 $(136.71) $48.96 $(87.75) $1,544.34 4 $(136.71) $46.33 $(90.38) $1,453.95 5 $(136.71) $43.62 $(93.10) $1,360.86 6 $(136.71) $40.83 $(95.89) $1,264.97 7 $(136.71) $37.95 $(98.77) $1,166.20 8 $(136.71) $34.99 $(101.73) $1,064.47 9 $(136.71) $31.93 $(104.78) $959.69 10 $(136.71) $28.79 $(107.92) $851.77 11 $(136.71) $25.55 $(111.16) $740.61 12 $(136.71) $22.22 $(114.50) $626.11 13 $(136.71) $18.78 $(117.93) $508.18 14 $(136.71) $15.25 $(121.47) $386.71 15 $(136.71) $11.60 $(125.11) $261.60 16 $(136.71) $7.85 $(128.87) $132.73 17 $(136.71) $3.98 $(132.73) $-
John
My calculator said it, I believe it, that settles it
