#26 Derek borrows $308,808.00 to buy a house. He has a 30-year mortgage with a rate...

#26 Derek borrows $308,808.00 to buy a house. He has a 30-year mortgage with a rate of 5.42%. After making 132.00 payments, how much does he owe on the mortgage?

Solutions

Expert Solution

Step 1: Find the monthly payment. We can use present value of annuity formula:

Where,
PVA = Present value of annuity
A = Annuity or payment
i = Interest rate in decimal form
a = Number of payments in a year
n = Number of payments (30*12 = 360)

Therefore, monthly payment = $1737.91

We can use the balance of loan formula to find the answer:

Where,
PV = Present value or original balance
A = Annuity or Monthly Payment
i = rate of interest
a = number of payments per year
n = number of payments done

Therefore, Derek owes $247,062.49 on the mortgage.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Derek borrows $327,651.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $327,651.00 to buy a house. He has a 30-year mortgage with a rate of 5.94%. After making 134.00 payments, how much does he owe on the mortgage?

Derek borrows $290,341.00 to buy a house. He has a 30 year mortgage with a rate...

Derek borrows $290,341.00 to buy a house. He has a 30 year mortgage with a rate of 4.09%. After making 86 payments, how much does he owe on the mortgage?

Derek borrows $290,132.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $290,132.00 to buy a house. He has a 30-year mortgage with a rate of 5.93%. After making 138.00 payments, how much does he owe on the mortgage? Answer format: Currency: Round to: 2 decimal places. Assume a bank offers an effective annual rate of 6.14%. If compounding is monthly what is the APR? Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) A...

Derek borrows $299,744.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $299,744.00 to buy a house. He has a 30-year mortgage with a rate of 5.62%. After making 81.00 payments, how much does he owe on the mortgage? Answer format: Currency: Round to: 2 decimal places.

Derek borrows $256,452.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $256,452.00 to buy a house. He has a 30-year mortgage with a rate of 4.58%. The monthly mortgage payment is $________. Derek borrows $283,432.00 to buy a house. He has a 30-year mortgage with a rate of 4.68%. After making 87.00 payments, how much does he owe on the mortgage? A bank offers 6.00% on savings accounts. What is the effective annual rate if interest is compounded quarterly?

Derek borrows $314,250.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $314,250.00 to buy a house. He has a 30-year mortgage with a rate of 5.21%. After making 83.00 payments, how much does he owe on the mortgage? (rounded to 2 decimal places)

Derek borrows $276,041.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $276,041.00 to buy a house. He has a 30-year mortgage with a rate of 4.03%. The monthly mortgage payment is $________. Answer format: Currency: Round to: 2 decimal places. Suppose you deposit $1,104.00 into an account 6.00 years from today. Exactly 14.00 years from today the account is worth $1,476.00. What was the account's interest rate? Answer format: Percentage Round to: 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places...

Derek borrows $294,313.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $294,313.00 to buy a house. He has a 30-year mortgage with a rate of 5.87%. After making 126.00 payments, how much does he owe on the mortgage? Derek borrows $42,453.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 6.33%. What will the payments be? Derek borrows $33,200.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate...

Derek borrows $343,539.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $343,539.00 to buy a house. He has a 30-year mortgage with a rate of 5.68%. After making 107.00 payments, how much does he owe on the mortgage?

Derek borrows $310,516.00 to buy a house. He has a 30-year mortgage with a rate of...

Derek borrows $310,516.00 to buy a house. He has a 30-year mortgage with a rate of 4.82%. After making 90.00 payments, how much does he owe on the mortgage?

Subjects