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Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded...

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Finance

Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.

a) What is his monthly mortgage payment?

b) What is his current loan balance?

Answer & Explanation Solved by verified expert
3.6 Ratings (414 Votes)

Ans a) $ 1062.05

b) $164,621.06

P = Regular Payments
PV = Loan Amount
r = rate of interest
n = no of periods
P = r (PV)
1 - (1 + r )-n
P = (5.6%/12)*185000
1 - (1 / (1 + 5.60%/12)^360))
P = 863.3333333
0.812896278
P = 1062.05
Beginning Balance Interest Principal Ending Balance
1 $185,000.00 $863.33 $198.71 $184,801.29
2 $184,801.29 $862.41 $199.64 $184,601.65
3 $184,601.65 $861.47 $200.57 $184,401.08
4 $184,401.08 $860.54 $201.51 $184,199.57
5 $184,199.57 $859.60 $202.45 $183,997.12
6 $183,997.12 $858.65 $203.39 $183,793.73
7 $183,793.73 $857.70 $204.34 $183,589.38
8 $183,589.38 $856.75 $205.30 $183,384.09
9 $183,384.09 $855.79 $206.25 $183,177.84
10 $183,177.84 $854.83 $207.22 $182,970.62
11 $182,970.62 $853.86 $208.18 $182,762.44
12 $182,762.44 $852.89 $209.15 $182,553.28
Year #1 End
13 $182,553.28 $851.92 $210.13 $182,343.15
14 $182,343.15 $850.93 $211.11 $182,132.04
15 $182,132.04 $849.95 $212.10 $181,919.94
16 $181,919.94 $848.96 $213.09 $181,706.86
17 $181,706.86 $847.97 $214.08 $181,492.77
18 $181,492.77 $846.97 $215.08 $181,277.70
19 $181,277.70 $845.96 $216.08 $181,061.61
20 $181,061.61 $844.95 $217.09 $180,844.52
21 $180,844.52 $843.94 $218.11 $180,626.41
22 $180,626.41 $842.92 $219.12 $180,407.29
23 $180,407.29 $841.90 $220.15 $180,187.15
24 $180,187.15 $840.87 $221.17 $179,965.97
Year #2 End
25 $179,965.97 $839.84 $222.20 $179,743.77
26 $179,743.77 $838.80 $223.24 $179,520.53
27 $179,520.53 $837.76 $224.28 $179,296.24
28 $179,296.24 $836.72 $225.33 $179,070.91
29 $179,070.91 $835.66 $226.38 $178,844.53
30 $178,844.53 $834.61 $227.44 $178,617.09
31 $178,617.09 $833.55 $228.50 $178,388.59
32 $178,388.59 $832.48 $229.57 $178,159.03
33 $178,159.03 $831.41 $230.64 $177,928.39
34 $177,928.39 $830.33 $231.71 $177,696.68
35 $177,696.68 $829.25 $232.79 $177,463.88
36 $177,463.88 $828.16 $233.88 $177,230.00
Year #3 End
37 $177,230.00 $827.07 $234.97 $176,995.03
38 $176,995.03 $825.98 $236.07 $176,758.96
39 $176,758.96 $824.88 $237.17 $176,521.79
40 $176,521.79 $823.77 $238.28 $176,283.51
41 $176,283.51 $822.66 $239.39 $176,044.12
42 $176,044.12 $821.54 $240.51 $175,803.61
43 $175,803.61 $820.42 $241.63 $175,561.98
44 $175,561.98 $819.29 $242.76 $175,319.23
45 $175,319.23 $818.16 $243.89 $175,075.34
46 $175,075.34 $817.02 $245.03 $174,830.31
47 $174,830.31 $815.87 $246.17 $174,584.14
48 $174,584.14 $814.73 $247.32 $174,336.82
Year #4 End
49 $174,336.82 $813.57 $248.47 $174,088.34
50 $174,088.34 $812.41 $249.63 $173,838.71
51 $173,838.71 $811.25 $250.80 $173,587.91
52 $173,587.91 $810.08 $251.97 $173,335.94
53 $173,335.94 $808.90 $253.15 $173,082.80
54 $173,082.80 $807.72 $254.33 $172,828.47
55 $172,828.47 $806.53 $255.51 $172,572.96
56 $172,572.96 $805.34 $256.71 $172,316.25
57 $172,316.25 $804.14 $257.90 $172,058.35
58 $172,058.35 $802.94 $259.11 $171,799.24
59 $171,799.24 $801.73 $260.32 $171,538.92
60 $171,538.92 $800.51 $261.53 $171,277.39
Year #5 End
61 $171,277.39 $799.29 $262.75 $171,014.64
62 $171,014.64 $798.07 $263.98 $170,750.66
63 $170,750.66 $796.84 $265.21 $170,485.45
64 $170,485.45 $795.60 $266.45 $170,219.01
65 $170,219.01 $794.36 $267.69 $169,951.32
66 $169,951.32 $793.11 $268.94 $169,682.38
67 $169,682.38 $791.85 $270.20 $169,412.18
68 $169,412.18 $790.59 $271.46 $169,140.72
69 $169,140.72 $789.32 $272.72 $168,868.00
70 $168,868.00 $788.05 $274.00 $168,594.01
71 $168,594.01 $786.77 $275.27 $168,318.73
72 $168,318.73 $785.49 $276.56 $168,042.17
Year #6 End
73 $168,042.17 $784.20 $277.85 $167,764.32
74 $167,764.32 $782.90 $279.15 $167,485.18
75 $167,485.18 $781.60 $280.45 $167,204.73
76 $167,204.73 $780.29 $281.76 $166,922.97
77 $166,922.97 $778.97 $283.07 $166,639.90
78 $166,639.90 $777.65 $284.39 $166,355.51
79 $166,355.51 $776.33 $285.72 $166,069.79
80 $166,069.79 $774.99 $287.05 $165,782.73
81 $165,782.73 $773.65 $288.39 $165,494.34
82 $165,494.34 $772.31 $289.74 $165,204.60
83 $165,204.60 $770.95 $291.09 $164,913.51
84 $164,913.51 $769.60 $292.45 $164,621.06
Year #7 End

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Transcribed Image Text

Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.a) What is his monthly mortgage payment?b) What is his current loan balance?

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