your montly mortgage payment ( principal plus interest) is $1,500.00. If you have a 30 years...

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your montly mortgage payment ( principal plus interest) is $1,500.00. If you have a 30 years...

your montly mortgage payment ( principal plus interest) is $1,500.00. If you have a 30 years loan with a fixed interest rate of 6% compounded monthly, how much did you borrow?

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Answer 1

Answer #1

We know, A = P (1 + r/m)^mt, where A = 1500, r = 6% m =1, t =30

1500 = P (1 + 0.06)³⁰

P = 1500 /(1.06)³⁰

P = 1500 / 5.74 = 261.3

So 261.3 amount was borrowed initally.

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Answer 2

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