Question

In: Economics

Cost of Home: $225,000 Down Payment: $15,000 Annual Interest Rate: 6.960% Number of Years: 25 In...

Cost of Home: $225,000

Down Payment: $15,000

Annual Interest Rate: 6.960%

Number of Years: 25

In addition, enter $400 as an additional principal payment for month 36 and $100 as an additional principal payment for month 75. what is the monthly closing balance from month 52

Expert Solution

Cost of home = $ 225,000

Down payment = $ 15,000

Interest rate = 6.96%

Number of years = 25 years

Additional payment 36th month = $ 400

75th month = $ 100

Loan amount = 225,000 - 15,000 = $ 210,000

First calculate the equated monthly installment

Now determine the principal left after 36 month payment

In the 36th month additional payment of $ 400. Amount left after 36th payment = $ 199,589.21 - 400 = $ 199,189.21

Refer the attached picture the amount after 52 months is $ 193,780.43.

I have solved it using excel and got this amount.

Please contact if having any query will be obliged to you for you for your generous support. Please help me thank you.

Rahul Sunny answered 1 year ago

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