MATH
posted by TRAY on .
Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information:
Escrow payment
$211.13
Principle and Interest payment
$706.12
Total Payment
$917.25
Current Loan Balance
$112,242.47
Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25.

P = (Po*r*t)/(1(1+r)^t).
Po = $112,242.47.
r = (5.75%/12) / 100% = 0.0048 = Monthly
% rate expressed as a decimal.
t = 12mo./yr * 20yrs = 240 Months.
Plug the above values in the given Eq
and solve for P.
Answer:P = $189,282.43
Monthly(I+P)=P/t=189282.43 / 240=$788.51
788.51  706.12 = $82.39 Higher.
This amount will be added to the previous monthly payment of $917.25.