Math
posted by Sara on .
Sarah secured a bank loan of $200,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 yr, with interest rate of 6%/year compounded monthly on the unpaid balance. She plans to sell her house in 5 yr. How much will Sarah still owe on her house?

payment = ?
n = 180
i = .06/12 = .005
200000 = paym( 1  1.005^180)/.005
paym = 1687.71
balance after 5 years
= 200000(1.005)^60  1687.71(1.005^60  1)/.005
=269770.03  117751.83
= 152018.20