Math

This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $108,123 left to pay on your loan. Your house is now valued at $180,000.

Your current situation

How much of the original loan $126,000.00 have you paid off? (i.e, how much have you reduced the loan balance by? Keep in mind that interest is charged each month - it's not part of the loan balance.)

is it? 126000-108123.00 =17877.00

or 1-(1+0.07/12)^-10*12= 0.50240373249137/

0.07/12= 0.0058333333333= 86.12*10*12=10335.16

please help!

  1. 👍 2
  2. 👎 0
  3. 👁 571
  1. a farmer examines 25 cartons of eggs 3 contain cracked eggs whats the best prediction that in the number of cracked eggs in the delivery of 500

    1. 👍 0
    2. 👎 0
  2. I am glad to see that the present value of the house of $180,000 has nothing to do with the rest of the question.

    You also did not state what the rate of interest is, but from you partial solution I will surmise it is 7%

    The questions you asked can be answered as you did,
    126000-108123.00 =17877.00

    The obvious question, which you did not ask, would be:
    What was the monthly payment?

    monthly rate = .07/12 = .005833...
    monthly payment ---- p
    n = 120

    so ....
    126000(1.00583333..)^120 - p(1.005833...^120 - 1)/.0058333... = 108,123
    I get p = $838.28

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance: Mortgages

    A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6 (initial adjustment cap/periodic interest rate cap/lifetime interest rate cap). The start rate is 3.50% and the loan adjusts every 12 months for the

  2. Math/Finance

    Jasmine is taking out a small business loan for her floral shop. She plans to apply for a $30,000 loan with a 5-year term and a 3.75% interest rate. She is unsure of her expected monthly profits, so she wants to know the benefit

  3. loans

    A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6 (initial adjustment cap/periodic interest rate cap/lifetime interest rate cap). The start rate is 3.50% and the loan adjusts every 12 months for the

  4. MATH

    Jasmine is taking out a small business loan for her floral shop. She plans to apply for a $30,000 loan with a 5-year term and a 3.75% interest rate. She is unsure of her expected monthly profits, so she wants to know the benefit

  1. Finance

    You take out a 30-year $100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

  2. Math

    Suppose you take out a 45​-year ​$100,000 mortgage with an APR of 6​%. You make payments for 2 years ​(24 monthly​ payments) and then consider refinancing the original loan. The new loan would have a term of 20 ​years,

  3. finance

    You take out a 25-year $210,000 mortgage loan with an APR of 12% and monthly payments. In 16 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

  4. Math

    A 20 year loan requires semi-annual payments of $1333.28 including interest at 10.75% compounded semi annually. what is the original amount of the loan and what will be the balance of the loan 8.5 years later (just after the

  1. math

    Susan Borrowed $5000. The term of the loan is 12% compouned monthly for 3 years. what is the monthly payments? How much must she pay at the end of of 1 year to pay the balance off? How much did she save in interest by paying the

  2. Math

    You need to borrow $20,000 to buy a car. You can only afford to make monthly payments of $200. The bank offers 3 choices: 3-year loan at 5%, 4-year loan at 6%, and a 5-year loan at 7%. a) What’s the monthly payment for each

  3. Finance 101

    Given the recent drop in mortgage interest rates, you have decided to refinance your home. Exactly five years ago, you obtained a $150,000 30-year mortgage with a fixed rate of 10%. Today, you can get a 30-year loan for the

  4. finance

    You have just purchased a car and taken out a $ 37 comma 000 loan. The loan has a​ five-year term with monthly payments and an APR of 5.7 %. a. How much will you pay in​ interest, and how much will you pay in​ principal,

You can view more similar questions or ask a new question.