SOLUTION: Sarah secured a bank loan of $150,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year

Question 1202789: Sarah secured a bank loan of $150,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 5 years. How much will Sarah still owe on her house? (Round your answer to the nearest cent.)
$
When I did the work myself, I got 2330.30, but it is wrong. I am not sure how I messed up.
Answer by math_tutor2020(3817) (Show Source): You can put this solution on YOUR website!

I'll be using the 2nd formula mentioned at this link
https://www.mtgprofessor.com//formulas.htm

That formula is
B = L*( (1+c)^n - (1+c)^p )/( (1+c)^n - 1 )
it calculates the remaining balance.
It's the amount still owed at any given month p.

We have a giant single fraction
numerator = L*((1+c)^n - (1+c)^p)
denominator = (1+c)^n - 1

Variables
L = loan amount
c = monthly interest rate in decimal form
n = number of months of entire mortgage
p = current month number

We have
L = 150,000
c = 0.03/12 = 0.0025 exactly
n = 12*15 = 180 months (equivalent to 15 years)
p = 12*5 = 60 months (equivalent to 5 years)

Let's calculate the remaining balance
B = L*( (1+c)^n - (1+c)^p )/( (1+c)^n - 1 )
B = 150000*( (1+0.0025)^180 - (1+0.0025)^60 )/( (1+0.0025)^180 - 1 )
B = 107276.767971557
B = 107276.77

The amortization table on this calculator
https://www.calculator.net/loan-calculator.html
can be used to verify the answer.

Answer: $107,276.77

RELATED QUESTIONS
The Flemings secured a bank loan of $352,000 to help finance the purchase of a house. The (answered by Theo)

Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a... (answered by Theo)

The Taylors have purchased a $320,000 house. They made an initial down payment of $10,000 (answered by Theo)

The Taylors have purchased a 290000 house. they made an initial payment of 10000 and... (answered by math_tutor2020)

The Taylors have purchased a $180,000 house. They made an initial down payment of $30,000 (answered by Theo)

George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his (answered by Theo)

Darla purchased a new car during a special sales promotion by the manufacturer. She... (answered by Theo)

1- Aya and Harumi would like to buy a house and their dream house costs $500,000. They... (answered by Theo)

A. The Taylors have purchased a $240,000 house. They made an initial down payment of... (answered by math_tutor2020)