Gerardo and Todd took out a 30 year mortgage for $126,000 at the APR of 10.7% , compounded monthly. After they had...

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Gerardo and Todd took out a 30 year mortgage for $126,000 at the APR of 10.7% , compounded monthly. After they had made 10 ye

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Answer 1

Answer #1

We see that using Microsoft Excel, the balance on the loan 4 years after the refinance is given as equal to=-FV(5.8%/12,12*4,PMT(5.8%/12,12*25,FV(10.7%/12,12*10,PMT(10.7%/12,12*30,-126000),-126000)),FV(10.7%/12,12*10,PMT(10.7%/12,12*30,-126000),-126000))=$106,491.73

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Answer 2

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