# 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

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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

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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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