Loan Balance [2925]
Janice has a $100,000 mortgage for 30 years at 8% interest. She has paid on it for 10 years. What is the current balance on the mortgage? Use monthly tables.
Solution
Original Loan
$100,000
Given
Mortgage Constant
0.007338
From Column 6
Monthly Payment
$733.76
Loan x Mortgage Constant
PV of an Annuity
119.5543
From Column 5
Loan Balance
$87,724.70
Monthly Payment x PV of an Annuity from Column 5
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