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Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes...

Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes an APR of 7.46%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. After 19 years of payments, what is the balance outstanding on your loan?

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Answer #1

Balance outstanding after 19 years of payment is the present value of future installments, calculated at $62,594.81 as follows:

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