amount to be mortgaged = .9(290000)
= 261,000
i = .10/12 = .008333... (keep as is in calculator memory)
n = 30(12) = 360
payment = p
p( 1 - 1.008333..^-360)/.008333 = 261000
I get p = $2290.46
I will do the "outstanding balance" after 5 years, you do the other two cases in the same way.
Amount of debt if no payments had been made
= 261000(1.0083333...)^60
= 429,425.62
value of 60 payments
= 2290.46(1.008333..^60 - 1)/.008333..
= 177366.65
outstanding debt = 429,425.62 - 177366.65
= 252,058.98
Check with your notes , text, or instructions
how you are to calculate "equity".
I am not in the US, so am not familiar with your methods.
The Taylors have purchased a $290,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 10%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylor's be required to make?
How do I find out what is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years?
1 answer
1 answer