Question

Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance.

Twenty-year mortgage for ​$250,000 at 3.66​%; remaining balance after 12 years.

Answer 1

To find the monthly payment, we need to put the following values in the financial calculator:

INPUT	20*12=240	3.66/12=0.305	-250,000		0
TVM	N	I/Y	PV	PMT	FV
OUTPUT				1,470.54

So, Monthly Payment = $1,470.54

Now, we can find the remaining balance after 12 years, i.e, 144 months, by putting the following values in the financial calculator:

INPUT	144	0.305	-250,000	1,470.54
TVM	N	I/Y	PV	PMT	FV
OUTPUT					122,221.49

So, Remaining Balance after 12 years = $122,221.49