Homework Answers
Solution:
Monthly interest rate = 5.2%/12 = 0.43333%
Monthly installment amount = $149,811 / Cumulative PV factor at 0.433333% for 360 periods
= $149,811 / 182.11258 = $822.63
Amount still ow on loan today after 15 years = Present value of remaining 180 installments
= $822.63 * Cumulative PV factor at 0.4333333% for 180 periods
= $822.63 * 124.80481 = $102,668.18
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