A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to​ 70% of their equity. They puchased their home 12 years ago for ​$68,531. The home was financed by paying 10​% down and signing a 15​-year mortgage at 9​% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15​-year period. The net market value of the house is now​ $100,000. After making their 144th ​payment, they applied to the loan company for the maximum loan. How much​ (to the nearest​ dollar) will they​ receive?   Amount of​ loan: ​$ ​(Round to the nearest​ dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 8P
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A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to​ 70% of their equity. They puchased their home
12
years ago for
​$68,531.
The home was financed by paying
10​%
down and signing a
15​-year
mortgage at
9​%
on the unpaid balance. Equal monthly payments were made to amortize the loan over the
15​-year
period. The net market value of the house is now​ $100,000. After making their
144th
​payment, they applied to the loan company for the maximum loan. How much​ (to the nearest​ dollar) will they​ receive?
 
Amount of​ loan:
​$
​(Round to the nearest​ dollar.)
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