Question

Derek borrows $343,471.00 to buy a house. He has a 30-year mortgage with a rate of 4.20%. After making 104.00 payments, how much does he owe on the mortgage? SHOW FINANCE CALCULATOR KEY STROKES

Answer 1

Amount borrowed = $343,471

Annual interest rate = 4.20%
Monthly interest rate = 0.35%

Time period = 30 years or 360 months

Using financial calculator to calculate monthly payment:

N = 360
I = 0.35%
PV = -343471
FV = 0

PMT = 1,679.63

Monthly payment = $1,679.63

Number of payments outstanding = 256

Using financial calculator to calculate loan outstanding:

N = 256
I = 0.35%
PMT = 1679.63
FV = 0

PV = -283695.14

Loan outstanding = $283,695.14