Chapter 3, Problem 7P

The remaining loan balance, B, of a fixed payment n years mortgage after x years is given by:

$B=\frac{L{\left[\left(1+\frac{r}{12}\right)\right]}^{12n}-\left[{\left(1+\frac{r}{12}\right)}^{12x}\right]}{{\left(1+\frac{r}{12}\right)}^{12n}-1}$

where L is the loan amount, and r is the annual interest rate. Calculate the balance of a 30-year, $100,000 mortgage, with annual interest rate of 6% (use 0.06 in the equation) after 0.5, 10, 15, 20, 25, and 30 years. Create a seven-element vector for x and use element-by-element operations. Display the results in a two-row table where the values of years and balance are displayed in the first and second rows, respectively.