Question:
For a $150,000 mortgage, with interest rate 5.5%, paid over 15 years, the monthly payment is $1,225.63. After 2 monthly payments, what is the balance of the loan? Round to the nearest cent. Do not include the dollar sign or commas in the answer box below.
Answer:
here A =1225.63 ; t=2 , n=total number of periods =12*15 =180 ; i=interest per month =0.055/12
| unpaid balance after making t installment payments : U(t)=A*(1-(1+i)(t-n))/i=1225.63*(1-(1+0.055/12)(2-180)/(0.055/12)= | 148921.87 | ||||||
(please try 148921.28 if this comes wrong due to rounding error and reply)