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You have made 60 monthly payments of $500 at 8.5% annual interest. You have 300 payments...

You have made 60 monthly payments of $500 at 8.5% annual interest. You have 300 payments left on the loan. If you sell the house and must pay off this loan, how much do you owe the lender?

Solutions

Expert Solution

Monthly Payment = $500

Number of Payments = 300

Interest Rate = 8.5%

Loan Amount left = PV of Payments,

Calculating Present Value,

Using TVM Calculation,

PV = [FV = 0, PMT = 500, T = 300, I = 0.085/12]

PV = $62,094.28

Loan Amount owed = $62,094.28

jeff jeffy answered 3 years ago
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