In: Finance
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?
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