Question

You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will your remaining balance after 9 years

Answer 1

$ 261,958.85

Step-1:Calculation of annual payment
Annual Payment	=-PMT(rate,nper,pv,fv)
	= $     24,175.92
Where,
rate			=	7%
nper			=	30
pv	=	350000-50000	=	$       3,00,000
fv			=	0
Step-2:Loan balance after 9 years
Loan Balance after 9 years	=pv(rate,nper,pmt,fv)
	= $ 2,61,958.85
Where,
rate	=	7%
nper	=	21
pmt	=	$ -24,175.92
fv	=	0