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You want to take out a $266,000 mortgage (home loan). The interest rate on the loan is 4.3%, and the loan is for 30 years. Your monthly payments are $1,316,36. How much will still be owed after making payments for 5 years?

Answer :

sqdancefan

Answer:

  $241,736.77

Step-by-step explanation:

A financial calculator reports the future value of the loan after 60 payments to be ...

  $241,736.77

_____

The applicable formula is ...

  A = P(1 +r/12)^(12·t) -p((1 +r/12)^(12t) -1)/(r/12)

Filling in P = 266,000, p = 1316.36, r = 0.043, t = 5, we get the above number for A, the remaining balance on the loan.

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