Question
You have just graduated from college and landed your first big job. You have always dreamed of being a homeowner, and after carefully shopping for your dream home, you find one that you would like to purchase at a cost of $250,000. After researching banks to find the best interest rate, you find that Banks for Homeowners offers the best rate of 6% interest that compounds monthly for 30 years.
•What is the monthly payment for this loan?
•What is the unpaid balance of the loan at the end of 5 years?
•What is the unpaid balance at the end of the 10th year?
•What is the monthly payment for this loan?
•What is the unpaid balance of the loan at the end of 5 years?
•What is the unpaid balance at the end of the 10th year?
Answers
naseer
y/2-5=1
Henry
Pt = (Po*r*t) / (1 - (1 + r)^-t).
Pt = Loan amount after 30 years.
Po = Amount of loan = $250,000.
r = (6% / 12) / 100 = 0.005 = Int. rate
per month expressed as a decimal.
t=lenth of loan = 30 yrs. = 360 months.
Pt=(250000*0.005*360)/(1 -(1.005)^-360,
Pt = 450000 / (1-0.16604) = $539,595.47
= Amount of loan after 30 yrs.
539595.47 / 360mo = $1498.88 = monthly
payments.
The process of calculating the balance
before the maturity date is called Amortizing and cannot be shown here
because of the length of the table involved.
I can share this INFO with you:
5-Yr. Bal: $232,691.84
Pt = Loan amount after 30 years.
Po = Amount of loan = $250,000.
r = (6% / 12) / 100 = 0.005 = Int. rate
per month expressed as a decimal.
t=lenth of loan = 30 yrs. = 360 months.
Pt=(250000*0.005*360)/(1 -(1.005)^-360,
Pt = 450000 / (1-0.16604) = $539,595.47
= Amount of loan after 30 yrs.
539595.47 / 360mo = $1498.88 = monthly
payments.
The process of calculating the balance
before the maturity date is called Amortizing and cannot be shown here
because of the length of the table involved.
I can share this INFO with you:
5-Yr. Bal: $232,691.84
Dumbazz
Payed off 56% of a 30 year mortgage in 5years....