Question

Asked Oct 23, 2019

What is calculation of Outstanding Mortgage Balance (Repayment of Mortgage)? Please provide example.

Step 1

Outstanding Mortgage Balance refers the loan outstanding at any point in time after the loan has been disbursed. It's calculated using either of the two methods below:

- Original mortgage amount [-] The principal repaid till date
- Present value of all the future mortgage payments

Step 2

Example

Suppose you have taken a loan of $ 100,000 5 years ago for a period of 10 years at an APR of 10%. Assume that you...

Tagged in

Q: Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond a...

A: Calculation of real rate of return: Excel spread sheet:

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a ...

A: Calculation of present value of earning (PVOE) using excel when the price of product is $10,000:

Q: What is the present value of $1,150 deposited at the end of each quarter year for 12 years earning 6...

A: Calculation of Present Value:The present value is $38,124.16.Excel Spreadsheet:

Q: Machine X will produce cost savings of $6,000 per year for four years; machine Y will produce cost s...

A: Calculate the present value for both machines as follows:

Q: Hi. How would I go about solving a problem like the two I have submitted? Kathleen just received a...

A: Calculation of bonus value: The bonus value of Kathleen’s dad is $206,608.28.Excel spreadsheet:

Q: Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the fo...

A: Year 1:Current (Long-Term) Rates = 1R1 = 2.78% Year 2:1R1 = 2.78% or 0.0278E(2r1) = 4.10% or 0.0410 ...

Q: The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value...

A: Calculate the free cash flows as follows:

Q: question 1 1a. It is now January 1, 2018 you plan to make deposits of $500 each, one every 6 months,...

A: Part 1a : Calculation of Amount(Future value) in account after 10 years on semi annual basis.Calcula...

Q: You were hired as a consultant to XYZ Company, whose target capital structure is 30% debt, 8% prefe...

A: target capital structure:Proportion of debt = Wd = 30%Proportion of preferred capital = Ws = 8% andP...