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A young couple take out a 30-year home mortgage of $145,000.00 at 6.9% compounded monthly. They...

A young couple take out a 30-year home mortgage of $145,000.00 at 6.9% compounded monthly. They make their regular monthly payment for 7 years, then decide to up their monthly payment to $1,200.00.

a) What is the regular monthly payment? $

b) What is the unpaid balance when they begin paying the accelerated monthly payment of $1,200.00? $

c) How many monthly payment of $1,200.00 will it take to pay off the loan? payments d) How much interest will this couple save? $

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Answer #1

Formulas Used:-

a) Monthly Installment =PMT(C3,C4,-C2)
b) Balance After 7 years (84 months) =FV(C3,84,C6,-C2)
c) No of monthly Payment Required =NPER(C3,1200,-C8)
d) Savings Of Interest =(C6*(C4-84))-(1200*C10)

I hope my efforts will be fruitful to you.

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