Question

Assume you get a 30-year $90,000 mortgage loan at 7.25% interest.

A) Calculate the monthly payment (PI).

		$616.66
		$916.66
		$316.69
		$613.96

B) Based on making 360 payments of $613.96, what is the total interest of the 30 years?

$125,365.74
		$130,000
		$131,025.60
		$17,309.99

C) Use your amortization registers to calculate 1) interest for the entire 30 years and 2) balance after 360 payments of $613.96

Interest is $131,025.60 and Balance is 0
		Interest is $131,021.40 and Balance is 0
		Interest is $131,023.50 and Balance is $2.10
		Interest is $131,023.50 and Balance is -$2.10

D) Compare the total interest of problem B with the total interest of problem C. If there is a difference, explain which answer is correct and why.

Problem B is correct
		Problem C is correct; but, final payment is different.
		Problem B and Problem C are not comparable
		There is no difference

E) After making payments for 10 years, what is your balance?

	$77,768.99
		$77,678.99
		$77,888.44
		$97,789.88

F) After 10 years, you have made 1/3 of the payments. Why isn't 1/3 of the loan paid off?

	A payment of "interest-only" must have been made which did not impact principal.
		Interest is always calculated on unpaid balance
		A payment must have been missed
		1/3 of the loan is paid off

G) How many months will be left on the loan when the 1/3 of the balance is repaid?

	200 months
		148.19 months
		154.73 months
		123.45 months

H) How many years will it take for 1/3 of the loan balance to be repaid?

	About 16.75 years
		Exactly 15 years
		About 17.65 years
		Exactly 19.34 years

I am using HP 10bll+ Calculator. I got A-D finished and am stuck on E-H. All help is appreciated! Thanks!

Answer 1

Here is the answer from E to H