Mortgage Constant [2944]

The amount of the mortgage is $100,000 and the interest rate is 9%.  The loan will be amortized over a 30 year period.  What is the annual debt service.

Bonus question: Assume the loan is due at the end of the 7th year.  What will be the amount of the final (balloon) payment.  The balance of the loan is calculated after the payment for the 7th year is made so the balloon payment is the loan balance plus the final payment.

$93,254 (loan balance) + $9,734 (final payment) = $102,988 is due at the end of the 7th year.