Question

Larry purchased a house 10 years ago. The house cost $450.000 and the bank financed the loan at 4% interest for 30 years with monthly payments. Larry wants to sell the house. How much does he still owe on the house?

Answer 1

$ 354,527.82

Loan amount is always present value of monthly payments.
Step-1:calculation of monthly payment
Monthly payment	=-pmt(rate,nper,pv,fv)
	= $ 2,148.37
Where,
rate	=	Monthly interest rate	=	4%/12	=	0.003333333
nper	=	Number of periods	=	30*12	=	360
pv	=	Loan amount		=	$       4,50,000
fv	=	Value of loan at the end of 30 years	=	0
Step-2:Calculation of loan amount after 10 years
Loan value	=pv(rate,nper,pmt,fv)
	= $ 3,54,527.82
Where,
rate	=	Monthly interest rate	=	4%/12	=	0.003333333
nper	=	Number of periods	=	20*12	=	240
pmt	=	monthly payment		=	$     -2,148.37
fv	=	Value of loan at the end of 30 years	=	0