you borrowed $500,000 to buy a house. The mortgage rate s 24% (APR, monthly). The loan is to be repaid in equal monthly payments over 30 years. 29 years has passed. How much you owe to the bank on your home (loan principal) since you have 1 year left from your mortgage? Assume that each month is equal to 1/12 of a year.
- Loan amount = $500,000
calculating the Outstanding Loan Balance after 29 years in loan period:-
Where, P = Loan amount = $500,000
r = Periodic Interest rate = 24%/12 = 2%
n= no of periods = 30 years*12 = 360
m = no of loan payments already made = 29 years*12 = 348
Outstanding balance = $105,838.25
So, the you owe to the bank on your home (loan principal) is $105,838.25
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