Question

You have just sold your house for $900,000 in cash. Your mortgage was originally a​ 30-year mortgage with monthly payments and an initial balance of $700,000. The mortgage is currently exactly​ 18½ years​ old, and you have just made a payment. If the interest rate on the mortgage is 5.25% ​(APR), how much cash will you have from the sale once you pay off the​ mortgage? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Answer 1

Loan borrowed				700000
Monthyl rate of interest (5.25/12)				0.44%
Annuity PVF at 0.4375% for 360 periods				181.0926
Monthly payment to be made				3865.426
Monthly paid made for 222 periods
Remaining left (360-222): 138
Annuity PVF at 0.4375% for 138 periods				103.4336
Loan outstanding on date of sale				399815
	(3865.43 *103.43362)
Amount received on sale of house				900000
Net amount left after paying off Mortgage = 9000000- 399815 = $ 500185