Question

Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.)

$____

Answer 1

Ans $ 71100.12

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n
P =	(3%/12)*185000
	1 - (1 / (1 + 3%/12)^180))
P =	462.5
	0.362013679
P =	1277.58

	Beginning Balance	Interest	Principal	Ending Balance
1	$185,000.00	$462.50	$815.08	$184,184.92
2	$184,184.92	$460.46	$817.11	$183,367.81
3	$183,367.81	$458.42	$819.16	$182,548.65
4	$182,548.65	$456.37	$821.20	$181,727.45
5	$181,727.45	$454.32	$823.26	$180,904.19
6	$180,904.19	$452.26	$825.32	$180,078.88
7	$180,078.88	$450.20	$827.38	$179,251.50
8	$179,251.50	$448.13	$829.45	$178,422.05
9	$178,422.05	$446.06	$831.52	$177,590.53
10	$177,590.53	$443.98	$833.60	$176,756.93
11	$176,756.93	$441.89	$835.68	$175,921.25
12	$175,921.25	$439.80	$837.77	$175,083.47
Year #1 End
13	$175,083.47	$437.71	$839.87	$174,243.61
14	$174,243.61	$435.61	$841.97	$173,401.64
15	$173,401.64	$433.50	$844.07	$172,557.57
16	$172,557.57	$431.39	$846.18	$171,711.38
17	$171,711.38	$429.28	$848.30	$170,863.09
18	$170,863.09	$427.16	$850.42	$170,012.67
19	$170,012.67	$425.03	$852.54	$169,160.12
20	$169,160.12	$422.90	$854.68	$168,305.45
21	$168,305.45	$420.76	$856.81	$167,448.64
22	$167,448.64	$418.62	$858.95	$166,589.68
23	$166,589.68	$416.47	$861.10	$165,728.58
24	$165,728.58	$414.32	$863.25	$164,865.33
Year #2 End
25	$164,865.33	$412.16	$865.41	$163,999.91
26	$163,999.91	$410.00	$867.58	$163,132.34
27	$163,132.34	$407.83	$869.75	$162,262.59
28	$162,262.59	$405.66	$871.92	$161,390.67
29	$161,390.67	$403.48	$874.10	$160,516.57
30	$160,516.57	$401.29	$876.28	$159,640.29
31	$159,640.29	$399.10	$878.48	$158,761.81
32	$158,761.81	$396.90	$880.67	$157,881.14
33	$157,881.14	$394.70	$882.87	$156,998.27
34	$156,998.27	$392.50	$885.08	$156,113.19
35	$156,113.19	$390.28	$887.29	$155,225.89
36	$155,225.89	$388.06	$889.51	$154,336.38
Year #3 End
37	$154,336.38	$385.84	$891.74	$153,444.65
38	$153,444.65	$383.61	$893.96	$152,550.68
39	$152,550.68	$381.38	$896.20	$151,654.48
40	$151,654.48	$379.14	$898.44	$150,756.04
41	$150,756.04	$376.89	$900.69	$149,855.36
42	$149,855.36	$374.64	$902.94	$148,952.42
43	$148,952.42	$372.38	$905.19	$148,047.23
44	$148,047.23	$370.12	$907.46	$147,139.77
45	$147,139.77	$367.85	$909.73	$146,230.04
46	$146,230.04	$365.58	$912.00	$145,318.04
47	$145,318.04	$363.30	$914.28	$144,403.76
48	$144,403.76	$361.01	$916.57	$143,487.19
Year #4 End
49	$143,487.19	$358.72	$918.86	$142,568.33
50	$142,568.33	$356.42	$921.16	$141,647.18
51	$141,647.18	$354.12	$923.46	$140,723.72
52	$140,723.72	$351.81	$925.77	$139,797.95
53	$139,797.95	$349.49	$928.08	$138,869.87
54	$138,869.87	$347.17	$930.40	$137,939.47
55	$137,939.47	$344.85	$932.73	$137,006.74
56	$137,006.74	$342.52	$935.06	$136,071.69
57	$136,071.69	$340.18	$937.40	$135,134.29
58	$135,134.29	$337.84	$939.74	$134,194.55
59	$134,194.55	$335.49	$942.09	$133,252.46
60	$133,252.46	$333.13	$944.44	$132,308.01
Year #5 End
61	$132,308.01	$330.77	$946.81	$131,361.21
62	$131,361.21	$328.40	$949.17	$130,412.03
63	$130,412.03	$326.03	$951.55	$129,460.49
64	$129,460.49	$323.65	$953.92	$128,506.56
65	$128,506.56	$321.27	$956.31	$127,550.25
66	$127,550.25	$318.88	$958.70	$126,591.55
67	$126,591.55	$316.48	$961.10	$125,630.46
68	$125,630.46	$314.08	$963.50	$124,666.96
69	$124,666.96	$311.67	$965.91	$123,701.05
70	$123,701.05	$309.25	$968.32	$122,732.72
71	$122,732.72	$306.83	$970.74	$121,761.98
72	$121,761.98	$304.40	$973.17	$120,788.81
Year #6 End
73	$120,788.81	$301.97	$975.60	$119,813.21
74	$119,813.21	$299.53	$978.04	$118,835.16
75	$118,835.16	$297.09	$980.49	$117,854.67
76	$117,854.67	$294.64	$982.94	$116,871.74
77	$116,871.74	$292.18	$985.40	$115,886.34
78	$115,886.34	$289.72	$987.86	$114,898.48
79	$114,898.48	$287.25	$990.33	$113,908.15
80	$113,908.15	$284.77	$992.81	$112,915.34
81	$112,915.34	$282.29	$995.29	$111,920.06
82	$111,920.06	$279.80	$997.78	$110,922.28
83	$110,922.28	$277.31	$1,000.27	$109,922.01
84	$109,922.01	$274.81	$1,002.77	$108,919.24
Year #7 End
85	$108,919.24	$272.30	$1,005.28	$107,913.96
86	$107,913.96	$269.78	$1,007.79	$106,906.17
87	$106,906.17	$267.27	$1,010.31	$105,895.86
88	$105,895.86	$264.74	$1,012.84	$104,883.02
89	$104,883.02	$262.21	$1,015.37	$103,867.65
90	$103,867.65	$259.67	$1,017.91	$102,849.75
91	$102,849.75	$257.12	$1,020.45	$101,829.29
92	$101,829.29	$254.57	$1,023.00	$100,806.29
93	$100,806.29	$252.02	$1,025.56	$99,780.73
94	$99,780.73	$249.45	$1,028.12	$98,752.61
95	$98,752.61	$246.88	$1,030.69	$97,721.91
96	$97,721.91	$244.30	$1,033.27	$96,688.64
Year #8 End
97	$96,688.64	$241.72	$1,035.85	$95,652.79
98	$95,652.79	$239.13	$1,038.44	$94,614.34
99	$94,614.34	$236.54	$1,041.04	$93,573.30
100	$93,573.30	$233.93	$1,043.64	$92,529.66
101	$92,529.66	$231.32	$1,046.25	$91,483.41
102	$91,483.41	$228.71	$1,048.87	$90,434.54
103	$90,434.54	$226.09	$1,051.49	$89,383.05
104	$89,383.05	$223.46	$1,054.12	$88,328.93
105	$88,328.93	$220.82	$1,056.75	$87,272.18
106	$87,272.18	$218.18	$1,059.40	$86,212.78
107	$86,212.78	$215.53	$1,062.04	$85,150.74
108	$85,150.74	$212.88	$1,064.70	$84,086.04
Year #9 End
109	$84,086.04	$210.22	$1,067.36	$83,018.68
110	$83,018.68	$207.55	$1,070.03	$81,948.65
111	$81,948.65	$204.87	$1,072.70	$80,875.95
112	$80,875.95	$202.19	$1,075.39	$79,800.56
113	$79,800.56	$199.50	$1,078.07	$78,722.48
114	$78,722.48	$196.81	$1,080.77	$77,641.71
115	$77,641.71	$194.10	$1,083.47	$76,558.24
116	$76,558.24	$191.40	$1,086.18	$75,472.06
117	$75,472.06	$188.68	$1,088.90	$74,383.17
118	$74,383.17	$185.96	$1,091.62	$73,291.55
119	$73,291.55	$183.23	$1,094.35	$72,197.20
120	$72,197.20	$180.49	$1,097.08	$71,100.12