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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
The payment necessary to amortize a 6.8% loan of $99,000 compounded annually, with 8 annual payments is $16,451.04. The total of the payments is $131,608.32 with a total interest payment of $32,608.32. The borrower made larger payments of $17,000.00.
Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved.
a. The time needed to pay off the loan with payments of $27,000 is __ years (round up to the nearest year)
b. The total amount of the payment is $ ___ (round to the nearest cent as needed)
c. The amount of interest saved is $ ___ (round to the nearest cent as needed)
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