Question

Derek borrows $317,560.00 to buy a house. He has a 30-year mortgage with a rate of 5.23%. After making 136.00 payments, how much does he owe on the mortgage?

Answer 1

The following question can be solved using the financial calculator and the following inputs are required to solve this:

PV = amount borrowed = $317,560
N = 30 * 12 = 360
I/Y = 5.23% / 12 = 0.45383%
FV = 0
Calculate PMT and it comes out to be $1,792.32

Amount to be owed on the mortgage using a financial calculator:

PV = amount borrowed = $317,560
N = 136
I/Y = 5.23% / 12 = 0.45383%
PMT = - $1,792.32

 

Calculate FV and it comes out to be $-251,704.03.

Hence, the amount owed is equal to $-251,704.03.

Hence, the amount owed is equal to $-251,704.03.