Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded...

Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded monthly, for 30 years. He has made all of the monthly payments as agreed.

a) What is his monthly mortgage payment?

b) What is his current loan balance?

Expert Solution

Ans a) $ 1062.05

b) $164,621.06

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods

	P =	r (PV)
		1 - (1 + r )^-n

	P =	(5.6%/12)*185000
		1 - (1 / (1 + 5.60%/12)^360))

	P =	863.3333333
		0.812896278

	P =	1062.05



	Beginning Balance	Interest	Principal	Ending Balance
1	$185,000.00	$863.33	$198.71	$184,801.29
2	$184,801.29	$862.41	$199.64	$184,601.65
3	$184,601.65	$861.47	$200.57	$184,401.08
4	$184,401.08	$860.54	$201.51	$184,199.57
5	$184,199.57	$859.60	$202.45	$183,997.12
6	$183,997.12	$858.65	$203.39	$183,793.73
7	$183,793.73	$857.70	$204.34	$183,589.38
8	$183,589.38	$856.75	$205.30	$183,384.09
9	$183,384.09	$855.79	$206.25	$183,177.84
10	$183,177.84	$854.83	$207.22	$182,970.62
11	$182,970.62	$853.86	$208.18	$182,762.44
12	$182,762.44	$852.89	$209.15	$182,553.28
Year #1 End
13	$182,553.28	$851.92	$210.13	$182,343.15
14	$182,343.15	$850.93	$211.11	$182,132.04
15	$182,132.04	$849.95	$212.10	$181,919.94
16	$181,919.94	$848.96	$213.09	$181,706.86
17	$181,706.86	$847.97	$214.08	$181,492.77
18	$181,492.77	$846.97	$215.08	$181,277.70
19	$181,277.70	$845.96	$216.08	$181,061.61
20	$181,061.61	$844.95	$217.09	$180,844.52
21	$180,844.52	$843.94	$218.11	$180,626.41
22	$180,626.41	$842.92	$219.12	$180,407.29
23	$180,407.29	$841.90	$220.15	$180,187.15
24	$180,187.15	$840.87	$221.17	$179,965.97
Year #2 End
25	$179,965.97	$839.84	$222.20	$179,743.77
26	$179,743.77	$838.80	$223.24	$179,520.53
27	$179,520.53	$837.76	$224.28	$179,296.24
28	$179,296.24	$836.72	$225.33	$179,070.91
29	$179,070.91	$835.66	$226.38	$178,844.53
30	$178,844.53	$834.61	$227.44	$178,617.09
31	$178,617.09	$833.55	$228.50	$178,388.59
32	$178,388.59	$832.48	$229.57	$178,159.03
33	$178,159.03	$831.41	$230.64	$177,928.39
34	$177,928.39	$830.33	$231.71	$177,696.68
35	$177,696.68	$829.25	$232.79	$177,463.88
36	$177,463.88	$828.16	$233.88	$177,230.00
Year #3 End
37	$177,230.00	$827.07	$234.97	$176,995.03
38	$176,995.03	$825.98	$236.07	$176,758.96
39	$176,758.96	$824.88	$237.17	$176,521.79
40	$176,521.79	$823.77	$238.28	$176,283.51
41	$176,283.51	$822.66	$239.39	$176,044.12
42	$176,044.12	$821.54	$240.51	$175,803.61
43	$175,803.61	$820.42	$241.63	$175,561.98
44	$175,561.98	$819.29	$242.76	$175,319.23
45	$175,319.23	$818.16	$243.89	$175,075.34
46	$175,075.34	$817.02	$245.03	$174,830.31
47	$174,830.31	$815.87	$246.17	$174,584.14
48	$174,584.14	$814.73	$247.32	$174,336.82
Year #4 End
49	$174,336.82	$813.57	$248.47	$174,088.34
50	$174,088.34	$812.41	$249.63	$173,838.71
51	$173,838.71	$811.25	$250.80	$173,587.91
52	$173,587.91	$810.08	$251.97	$173,335.94
53	$173,335.94	$808.90	$253.15	$173,082.80
54	$173,082.80	$807.72	$254.33	$172,828.47
55	$172,828.47	$806.53	$255.51	$172,572.96
56	$172,572.96	$805.34	$256.71	$172,316.25
57	$172,316.25	$804.14	$257.90	$172,058.35
58	$172,058.35	$802.94	$259.11	$171,799.24
59	$171,799.24	$801.73	$260.32	$171,538.92
60	$171,538.92	$800.51	$261.53	$171,277.39
Year #5 End
61	$171,277.39	$799.29	$262.75	$171,014.64
62	$171,014.64	$798.07	$263.98	$170,750.66
63	$170,750.66	$796.84	$265.21	$170,485.45
64	$170,485.45	$795.60	$266.45	$170,219.01
65	$170,219.01	$794.36	$267.69	$169,951.32
66	$169,951.32	$793.11	$268.94	$169,682.38
67	$169,682.38	$791.85	$270.20	$169,412.18
68	$169,412.18	$790.59	$271.46	$169,140.72
69	$169,140.72	$789.32	$272.72	$168,868.00
70	$168,868.00	$788.05	$274.00	$168,594.01
71	$168,594.01	$786.77	$275.27	$168,318.73
72	$168,318.73	$785.49	$276.56	$168,042.17
Year #6 End
73	$168,042.17	$784.20	$277.85	$167,764.32
74	$167,764.32	$782.90	$279.15	$167,485.18
75	$167,485.18	$781.60	$280.45	$167,204.73
76	$167,204.73	$780.29	$281.76	$166,922.97
77	$166,922.97	$778.97	$283.07	$166,639.90
78	$166,639.90	$777.65	$284.39	$166,355.51
79	$166,355.51	$776.33	$285.72	$166,069.79
80	$166,069.79	$774.99	$287.05	$165,782.73
81	$165,782.73	$773.65	$288.39	$165,494.34
82	$165,494.34	$772.31	$289.74	$165,204.60
83	$165,204.60	$770.95	$291.09	$164,913.51
84	$164,913.51	$769.60	$292.45	$164,621.06
Year #7 End

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