Question
In: Finance
Suppose that you are considering a conventional, fixed-rate30-year mortgage loan for $100,000. The lender quotes...
Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes an APR of 5.38%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. After 19 years of payments, what is the balance outstanding on your loan? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do not type the $ symbol.
Solutions
Expert Solution
Calculating the Balance Outstanding of Loan:-
Where, P = Loan Amount = $100,000
r = Periodic Interest rate =5.38%/12 = 0.448333%
n= no of periods = 30 years*12 = 360
m = no of monthly payments already made = 19 years*12 = 228
Outstanding Balance = $55,728.86
So, the balance outstanding on your loan is $55,728.86
jeff jeffy answered 2 years agoRelated Solutions
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A) $9,619.05
B)$6,412.70
C)$5,284.99
D)$7,500.27
.
Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...
Suppose that you are considering a conventional, fixed-rate
15-year mortgage loan for $300,000. The lender quotes an APR of 4%,
compounded monthly; mortgage payments would be monthly, beginning
one month after the closing on your home purchase. In the tenth
year of your mortgage (months 109 through 120), what would be the
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Group of answer choices $15,199.56 $13,159.65 $12,112.53
$14,064.27
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Do not round at intermediate steps in your calculation.
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