Question

Asked Sep 28, 2019

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In order to solve this question, would I use the compounded monthly formula and then subtract the balance between the difference?

36. If $50,000 is borrowed for a home mortgage, to be repaid at 10% interest over 30 years, what is the remaining loan balance after 20 years? Assume monthly payments are made.

a. $50,000b. $42,957 c. $32,590 D. $33,203e. $20,651

Step 1

We will do it in following steps:

- First we will find out what should be the monthly mortgage payment based on the given conditions.
- Second, we will find out the present value of the remaining mortgage payments to get the value of the loan outstanding

Step 2

Please see the table on the white board. Figures in parenthesis, if any, mean negative values. All financials are in $. Adjacent cells...

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