Question

What is the future value of a fully amortized $50,000 loan at 4.25% with a term of 30 years, if it is paid off at 15 years instead of 30 years?

Answer 1

$ 32,696.66

Step-1:Calculation of monthly payment of 30 years loan
Monthly Payment	=-pmt(rate,nper,pv,fv)
	= $245.97
Where,
rate	=	4.25%/12	=	0.003541667
nper	=	30*12	=	360
pv			=	$50,000
fv			=	$0
Step-2:Calculation of value of loan after 15 years
Value of loan after 15 years	=pv(rate,nper,pmt,fv)
	=$ 32,696.66
Where,
rate	=	4.25%/12	=	0.003541667
nper	=	15*12	=	180
pmt			=	-$245.97
fv			=	$0