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you take out a $250000 30 year mortgage with monthly payments and a rate of 3.5%...

you take out a $250000 30 year mortgage with monthly payments and a rate of 3.5% montgky compounded.what is the loan balance by the end of the year 15
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Answer #1
First we have to compute monthly installment
We have to use financial calculator to solve this
put in calculator
FV 0
PV -250000
I 3.5%/12 0.29167%
N 30*12 360
compute PMT $1,122.61
Now we can compute the value of loan at the end of 15th year
PV -250000
PMT $1,122.61
I 0.29167%
N 15*12 180
Compute FV $157,034.43
Answer = $157,034.43
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