Question

HP 10BII+ CALCULATOR RESULT PLEASE

After working for a few years after college, you're ready to buy a $500,000 house. Suppose you pay 20% as a down payment, and you finance the rest for 30 years at 4%. What is the amount of your mortgage balance after your 150th monthly payment?

Answer 1

Cost of house = 500000

down payment 20% of 500000 =100000

loan amount (PV) = cost of house - down payment

=500000-100000

=400000

interest rate per month (i) =4%/12 =0.003333333333

number of total months (n) 30 years*12 =360

equal or monthly Payment formula = PV* i *((1+i)^n)/((1+i)^n-1)

=400000*0.003333333333*((1+0.003333333333)^360)/(((1+0.003333333333)^360)-1)

=1909.661182

Monthly payment (P)would be $1909.66

remaining number of monthly payment outstanding after 150th payment (n) =360-150 = 210

Unpaid balance formula (PV)=P *(1-(1/(1+i)^n))/i

=1909.66*(1-(1/(1+0.003333333333)^210))/0.003333333333

=288073.9074

So amount of mortgage after 150th month would be $288073.91