You purchased a home with a mortgage of $275,000. Payments on the mortgage are $1,400 at...
You purchased a home with a mortgage of $275,000. Payments on the mortgage are $1,400 at the beginning of each month and the annual interest rate on the mortgage is 5.50%. How many years will it take to pay off your mortgage? Round your answer to 2 decimals.
Homework Answers
Solution: Calculation of number of years required to repay the mortgage.
Following are the steps to be followed on Microsoft Excel to calculate the Number of years:
Step 1: Click on "FORMULAS" tab at the top of Microsoft
Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "NPER"
Step 4: Insert Rate = 0.055/12 PMT = -1400 PV =
275000 TYPE = 1
NPER = 495.356
Number of months required to pay off the mortgage is 495.356 Months
Number of years required to pay off the mortgage = 495.356/12 = 41.28 Years
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