document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1202789>Question 1202789</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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.)<BR>\n" );
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document.write( "When I did the work myself, I got 2330.30, but it is wrong. I am not sure how I messed up.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #837885 by </B><A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><B>math_tutor2020(3817)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=837885\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "I'll be using the 2nd formula mentioned at this link<BR>\n" );
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document.write( "That formula is<BR>\n" );
document.write( "B = L*( (1+c)^n - (1+c)^p )/( (1+c)^n - 1 )<BR>\n" );
document.write( "it calculates the remaining balance. <BR>\n" );
document.write( "It's the amount still owed at any given month p.\r<BR>\n" );
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document.write( "We have a giant single fraction<BR>\n" );
document.write( "numerator = L*((1+c)^n - (1+c)^p)<BR>\n" );
document.write( "denominator = (1+c)^n - 1\r<BR>\n" );
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document.write( "Variables<BR>\n" );
document.write( "L = loan amount<BR>\n" );
document.write( "c = monthly interest rate in decimal form<BR>\n" );
document.write( "n = number of months of entire mortgage<BR>\n" );
document.write( "p = current month number\r<BR>\n" );
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document.write( "We have<BR>\n" );
document.write( "L = 150,000<BR>\n" );
document.write( "c = 0.03/12 = 0.0025 exactly<BR>\n" );
document.write( "n = 12*15 = 180 months (equivalent to 15 years)<BR>\n" );
document.write( "p = 12*5 = 60 months (equivalent to 5 years)\r<BR>\n" );
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document.write( "Let's calculate the remaining balance<BR>\n" );
document.write( "B = L*( (1+c)^n - (1+c)^p )/( (1+c)^n - 1 )<BR>\n" );
document.write( "B = 150000*( (1+0.0025)^180 - (1+0.0025)^60 )/( (1+0.0025)^180 - 1 )<BR>\n" );
document.write( "B = 107276.767971557<BR>\n" );
document.write( "B = 107276.77\r<BR>\n" );
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document.write( "The amortization table on this calculator<BR>\n" );
document.write( "<a  rel=nofollow HREF=\"https://www.calculator.net/loan-calculator.html\">https://www.calculator.net/loan-calculator.html</a><BR>\n" );
document.write( "can be used to verify the answer.\r<BR>\n" );
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document.write( "Answer: <font color=red>$107,276.77</font><BR>\n" );
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