Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded...
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Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.
a) What is his monthly mortgage payment?
b) What is his current loan balance?
Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.
a) What is his monthly mortgage payment?
b) What is his current loan balance?
Answer & Explanation Solved by verified expert
3.6 Ratings (414 Votes)
Ans a) $ 1062.05
b) $164,621.06
| P = | Regular Payments | |||
| PV = | Loan Amount | |||
| r = | rate of interest | |||
| n = | no of periods | |||
| P = | r (PV) | |||
| 1 - (1 + r )-n | ||||
| P = | (5.6%/12)*185000 | |||
| 1 - (1 / (1 + 5.60%/12)^360)) | ||||
| P = | 863.3333333 | |||
| 0.812896278 | ||||
| P = | 1062.05 | |||
| Beginning Balance | Interest | Principal | Ending Balance | |
| 1 | $185,000.00 | $863.33 | $198.71 | $184,801.29 |
| 2 | $184,801.29 | $862.41 | $199.64 | $184,601.65 |
| 3 | $184,601.65 | $861.47 | $200.57 | $184,401.08 |
| 4 | $184,401.08 | $860.54 | $201.51 | $184,199.57 |
| 5 | $184,199.57 | $859.60 | $202.45 | $183,997.12 |
| 6 | $183,997.12 | $858.65 | $203.39 | $183,793.73 |
| 7 | $183,793.73 | $857.70 | $204.34 | $183,589.38 |
| 8 | $183,589.38 | $856.75 | $205.30 | $183,384.09 |
| 9 | $183,384.09 | $855.79 | $206.25 | $183,177.84 |
| 10 | $183,177.84 | $854.83 | $207.22 | $182,970.62 |
| 11 | $182,970.62 | $853.86 | $208.18 | $182,762.44 |
| 12 | $182,762.44 | $852.89 | $209.15 | $182,553.28 |
| Year #1 End | ||||
| 13 | $182,553.28 | $851.92 | $210.13 | $182,343.15 |
| 14 | $182,343.15 | $850.93 | $211.11 | $182,132.04 |
| 15 | $182,132.04 | $849.95 | $212.10 | $181,919.94 |
| 16 | $181,919.94 | $848.96 | $213.09 | $181,706.86 |
| 17 | $181,706.86 | $847.97 | $214.08 | $181,492.77 |
| 18 | $181,492.77 | $846.97 | $215.08 | $181,277.70 |
| 19 | $181,277.70 | $845.96 | $216.08 | $181,061.61 |
| 20 | $181,061.61 | $844.95 | $217.09 | $180,844.52 |
| 21 | $180,844.52 | $843.94 | $218.11 | $180,626.41 |
| 22 | $180,626.41 | $842.92 | $219.12 | $180,407.29 |
| 23 | $180,407.29 | $841.90 | $220.15 | $180,187.15 |
| 24 | $180,187.15 | $840.87 | $221.17 | $179,965.97 |
| Year #2 End | ||||
| 25 | $179,965.97 | $839.84 | $222.20 | $179,743.77 |
| 26 | $179,743.77 | $838.80 | $223.24 | $179,520.53 |
| 27 | $179,520.53 | $837.76 | $224.28 | $179,296.24 |
| 28 | $179,296.24 | $836.72 | $225.33 | $179,070.91 |
| 29 | $179,070.91 | $835.66 | $226.38 | $178,844.53 |
| 30 | $178,844.53 | $834.61 | $227.44 | $178,617.09 |
| 31 | $178,617.09 | $833.55 | $228.50 | $178,388.59 |
| 32 | $178,388.59 | $832.48 | $229.57 | $178,159.03 |
| 33 | $178,159.03 | $831.41 | $230.64 | $177,928.39 |
| 34 | $177,928.39 | $830.33 | $231.71 | $177,696.68 |
| 35 | $177,696.68 | $829.25 | $232.79 | $177,463.88 |
| 36 | $177,463.88 | $828.16 | $233.88 | $177,230.00 |
| Year #3 End | ||||
| 37 | $177,230.00 | $827.07 | $234.97 | $176,995.03 |
| 38 | $176,995.03 | $825.98 | $236.07 | $176,758.96 |
| 39 | $176,758.96 | $824.88 | $237.17 | $176,521.79 |
| 40 | $176,521.79 | $823.77 | $238.28 | $176,283.51 |
| 41 | $176,283.51 | $822.66 | $239.39 | $176,044.12 |
| 42 | $176,044.12 | $821.54 | $240.51 | $175,803.61 |
| 43 | $175,803.61 | $820.42 | $241.63 | $175,561.98 |
| 44 | $175,561.98 | $819.29 | $242.76 | $175,319.23 |
| 45 | $175,319.23 | $818.16 | $243.89 | $175,075.34 |
| 46 | $175,075.34 | $817.02 | $245.03 | $174,830.31 |
| 47 | $174,830.31 | $815.87 | $246.17 | $174,584.14 |
| 48 | $174,584.14 | $814.73 | $247.32 | $174,336.82 |
| Year #4 End | ||||
| 49 | $174,336.82 | $813.57 | $248.47 | $174,088.34 |
| 50 | $174,088.34 | $812.41 | $249.63 | $173,838.71 |
| 51 | $173,838.71 | $811.25 | $250.80 | $173,587.91 |
| 52 | $173,587.91 | $810.08 | $251.97 | $173,335.94 |
| 53 | $173,335.94 | $808.90 | $253.15 | $173,082.80 |
| 54 | $173,082.80 | $807.72 | $254.33 | $172,828.47 |
| 55 | $172,828.47 | $806.53 | $255.51 | $172,572.96 |
| 56 | $172,572.96 | $805.34 | $256.71 | $172,316.25 |
| 57 | $172,316.25 | $804.14 | $257.90 | $172,058.35 |
| 58 | $172,058.35 | $802.94 | $259.11 | $171,799.24 |
| 59 | $171,799.24 | $801.73 | $260.32 | $171,538.92 |
| 60 | $171,538.92 | $800.51 | $261.53 | $171,277.39 |
| Year #5 End | ||||
| 61 | $171,277.39 | $799.29 | $262.75 | $171,014.64 |
| 62 | $171,014.64 | $798.07 | $263.98 | $170,750.66 |
| 63 | $170,750.66 | $796.84 | $265.21 | $170,485.45 |
| 64 | $170,485.45 | $795.60 | $266.45 | $170,219.01 |
| 65 | $170,219.01 | $794.36 | $267.69 | $169,951.32 |
| 66 | $169,951.32 | $793.11 | $268.94 | $169,682.38 |
| 67 | $169,682.38 | $791.85 | $270.20 | $169,412.18 |
| 68 | $169,412.18 | $790.59 | $271.46 | $169,140.72 |
| 69 | $169,140.72 | $789.32 | $272.72 | $168,868.00 |
| 70 | $168,868.00 | $788.05 | $274.00 | $168,594.01 |
| 71 | $168,594.01 | $786.77 | $275.27 | $168,318.73 |
| 72 | $168,318.73 | $785.49 | $276.56 | $168,042.17 |
| Year #6 End | ||||
| 73 | $168,042.17 | $784.20 | $277.85 | $167,764.32 |
| 74 | $167,764.32 | $782.90 | $279.15 | $167,485.18 |
| 75 | $167,485.18 | $781.60 | $280.45 | $167,204.73 |
| 76 | $167,204.73 | $780.29 | $281.76 | $166,922.97 |
| 77 | $166,922.97 | $778.97 | $283.07 | $166,639.90 |
| 78 | $166,639.90 | $777.65 | $284.39 | $166,355.51 |
| 79 | $166,355.51 | $776.33 | $285.72 | $166,069.79 |
| 80 | $166,069.79 | $774.99 | $287.05 | $165,782.73 |
| 81 | $165,782.73 | $773.65 | $288.39 | $165,494.34 |
| 82 | $165,494.34 | $772.31 | $289.74 | $165,204.60 |
| 83 | $165,204.60 | $770.95 | $291.09 | $164,913.51 |
| 84 | $164,913.51 | $769.60 | $292.45 | $164,621.06 |
| Year #7 End | ||||
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Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.a) What is his monthly mortgage payment?b) What is his current loan balance?
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