Question 1200936
house costs 180,000.
down payment is 30,000.
mortgage is 180 - 30 = 150,000
interest rate is 9% per year, compounded montly, = 9/12 = .75% per month.
number of months is 30 years * 12 = 360 months.
the equity in their home (disregarding appreciation or depreciaion of the value of the home over time), will be 30,000 plus whatever equity is in their home from the mortgage.
after 5 years, the equity from the mortgage is equal to 30,000 + 6,179.8 = 36,179.80.
after 10 years, the equity from the mortgage is equal to 30,000 + 15,855.38 = 45,855.38.
after 20 years, the equity from the mortgage is equal to 30,000 + 54,722.59 = 84,722.59.