# Finance

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IF i AM PAYING \$1,626.83 MONTH FOR 15 YEARS AT 4% WHAT WOULD THE ORIGINAL MORTGAGE AMT BE

• Finance -

P=1626.83 * 15yrs. * 12mo./yr.=292829.40

P = (Po*r*t)/(1-(1+r)^-t) = 292829.40

r = (4%/12)/100% = 0.00333 = Monthly % rate expressed as a decimal.

t = 15yrs. * 12mo/yr. = 189 Months.

(Po*0.00333*180)/(1-(1.00333)^-180)=
292,829.40
0.5994Po/0.45031 = 292829.40
1.33108Po = 292829.40
Po = \$ 219,993.84

• Finance -

Correction: t = 180 Months.

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