Question

Sarah secured a bank loan of $175,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.)
$

Answer 1

Ans $57,648.74

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(3%/12)*175000
		1 - (1 / (1 + 3%/12)^180))
	P =	437.5
		0.362013679
	P =	1208.52
	Beginning Balance	Interest	Principal	Ending Balance
1	$150,000.00	$375.00	$660.87	$149,339.13
2	$149,339.13	$373.35	$662.52	$148,676.60
3	$148,676.60	$371.69	$664.18	$148,012.42
4	$148,012.42	$370.03	$665.84	$147,346.58
5	$147,346.58	$368.37	$667.51	$146,679.07
6	$146,679.07	$366.70	$669.17	$146,009.90
7	$146,009.90	$365.02	$670.85	$145,339.05
8	$145,339.05	$363.35	$672.52	$144,666.53
9	$144,666.53	$361.67	$674.21	$143,992.32
10	$143,992.32	$359.98	$675.89	$143,316.43
11	$143,316.43	$358.29	$677.58	$142,638.85
12	$142,638.85	$356.60	$679.28	$141,959.57
Year #1 End
13	$141,959.57	$354.90	$680.97	$141,278.60
14	$141,278.60	$353.20	$682.68	$140,595.92
15	$140,595.92	$351.49	$684.38	$139,911.54
16	$139,911.54	$349.78	$686.09	$139,225.45
17	$139,225.45	$348.06	$687.81	$138,537.64
18	$138,537.64	$346.34	$689.53	$137,848.11
19	$137,848.11	$344.62	$691.25	$137,156.86
20	$137,156.86	$342.89	$692.98	$136,463.88
21	$136,463.88	$341.16	$694.71	$135,769.16
22	$135,769.16	$339.42	$696.45	$135,072.71
23	$135,072.71	$337.68	$698.19	$134,374.52
24	$134,374.52	$335.94	$699.94	$133,674.59
Year #2 End
25	$133,674.59	$334.19	$701.69	$132,972.90
26	$132,972.90	$332.43	$703.44	$132,269.46
27	$132,269.46	$330.67	$705.20	$131,564.26
28	$131,564.26	$328.91	$706.96	$130,857.30
29	$130,857.30	$327.14	$708.73	$130,148.57
30	$130,148.57	$325.37	$710.50	$129,438.07
31	$129,438.07	$323.60	$712.28	$128,725.79
32	$128,725.79	$321.81	$714.06	$128,011.74
33	$128,011.74	$320.03	$715.84	$127,295.89
34	$127,295.89	$318.24	$717.63	$126,578.26
35	$126,578.26	$316.45	$719.43	$125,858.83
36	$125,858.83	$314.65	$721.23	$125,137.61
Year #3 End
Year #8 End
97	$78,396.20	$195.99	$839.88	$77,556.31
98	$77,556.31	$193.89	$841.98	$76,714.33
99	$76,714.33	$191.79	$844.09	$75,870.25
100	$75,870.25	$189.68	$846.20	$75,024.05
101	$75,024.05	$187.56	$848.31	$74,175.74
102	$74,175.74	$185.44	$850.43	$73,325.30
103	$73,325.30	$183.31	$852.56	$72,472.74
104	$72,472.74	$181.18	$854.69	$71,618.05
105	$71,618.05	$179.05	$856.83	$70,761.23
106	$70,761.23	$176.90	$858.97	$69,902.26
107	$69,902.26	$174.76	$861.12	$69,041.14
108	$69,041.14	$172.60	$863.27	$68,177.87
Year #9 End
109	$68,177.87	$170.44	$865.43	$67,312.44
110	$67,312.44	$168.28	$867.59	$66,444.85
111	$66,444.85	$166.11	$869.76	$65,575.09
112	$65,575.09	$163.94	$871.93	$64,703.16
113	$64,703.16	$161.76	$874.11	$63,829.04
114	$63,829.04	$159.57	$876.30	$62,952.74
115	$62,952.74	$157.38	$878.49	$62,074.25
116	$62,074.25	$155.19	$880.69	$61,193.56
117	$61,193.56	$152.98	$882.89	$60,310.68
118	$60,310.68	$150.78	$885.10	$59,425.58
119	$59,425.58	$148.56	$887.31	$58,538.27
120	$58,538.27	$146.35	$889.53	$57,648.74
Year #10 End