This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $102,637 left to pay on your loan. Your house is now valued at $170,000. Your current situation How much of the original loan have you paid off? (i.e, how much have you reduced the loan balance by? Keep in mind that interest is charged each month - it's not part of the loan balance.)
This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $102,637 left to pay on your loan. Your house is now valued at $170,000. Your current situation How much of the original loan have you paid off? (i.e, how much have you reduced the loan balance by? Keep in mind that interest is charged each month - it's not part of the loan balance.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:This year (10 years after you first took out the loan), you check your loan balance. Only part of your
payments have been going to pay down the loan; the rest has been going towards interest. You see that
you still have $102,637 left to pay on your loan. Your house is now valued at $170,000. Your current
situation How much of the original loan have you paid off? (i.e, how much have you reduced the loan
balance by?
Keep in mind that interest is charged each month - it's not part of the loan balance.)
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