Question

Consider a mortgage of $150,000 at an interest rate of 3.6% APR compounded monthly for 30 years. 1. What would your monthly payment (PI) be? 2. How much interest would you pay over the 30 years note? 3. If you pay an extra $600 each month, how long would it take to pay off the loan? 4. Refer to #3, how much interest would you pay? 5. What would be your monthly payment if you wanted to pay off the mortgage in 10 years?

Answer 1

N implies 30 times 12 implies 360 r implies 3.60/12 implies 0.30% monthly instalment implies amount of loans/pvaf(r, n) implies 15000/p/a(0.30% 360) implies 150000/219.95 implies $681.968 \r\n to interest paid in 30 years implies (to instalment - loan) implies 681.968 times 360 - 150000 implies 245508.49 - 150000 implies $95508.49 if extra 500 paid each month then instalment amount implies 681.968 + 500 implies $1181.968 \r\n now the time required to pay the loan implies 1181.968 times p/a(0.30%, n) implies 150000 implies p/a(0.30%, n) implies 126.9069 as per pvaf table n implies 160 means in 160 months interest paid as per part 3 instalment int ant implies to instalment just - loan implies (1181.968 times 160) - 150000 implies 189114.88 - 1500000 implies $39114.88 as per HomeworkLib policy there is need to solve maximum four subparts in a single question so please ask to others