SOLUTION: You want to take out a $176,000 mortgage (home loan). The interest rate on the loan is 6.2%, and the loan is for 30 years. Your monthly payments are $1,077.95. How much will still

Algebra ->  Test -> SOLUTION: You want to take out a $176,000 mortgage (home loan). The interest rate on the loan is 6.2%, and the loan is for 30 years. Your monthly payments are $1,077.95. How much will still       Log On


   

Question 1195564: You want to take out a $176,000 mortgage (home loan). The interest rate on the loan is 6.2%, and the loan is for 30 years. Your monthly payments are $1,077.95. How much will still be owed after making payments for 20 years? Round your answer to the nearest dollar.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
the loan is 176,000
the interest rate per month is 6.2%/12 = .516666666.....%
the monthly payments are 1,077.95.
these payments are made at the end of each month.
after 20 years, the number of years remaining is 10.
the number of months remaining is 10 * 12 = 120.
the present value of 1077.95 at the end of each month for 120 months at the same interest rate is equal to 96,221.88.
round to the nearest dollar to get 96,222.
that's how much will still be owed after making payments for 20 years.
i used the calculator at https://arachnoid.com/finance/index.html
these are the results from using that calculator.

let me know if you have any questions.
theo