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Ann gets a fully amortizing 30-year fixed rate mortgage with monthly payments. The initial balance is...

Ann gets a fully amortizing 30-year fixed rate mortgage with monthly payments. The initial balance is $1,000,000. The interest rate is 3.50%, compounded monthly. What will be Ann’s loan balance after her 240th payment (if Ann makes exactly the required monthly payment for 20 years)?

Also, Using your answer from Q11, what fraction of the 241st payment will go to principal (in percent)?

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Answer #1

Balance after 240th payment= $454,104.01

Fraction of 241st payment to principal= 70.50%

Calculation as below:

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