You are buying a house for $120,000.00 with a downpayment of $12,000.00. The loan will be paid back over 25 years with monthly payments of $558.21. If the interest rate is 3.8% compounded monthly, what would the unpaid balance be immediately after the twenty-ninth payment? What is the equity after the twenty-ninth payment?
You are buying a house for $120,000.00 with a downpayment of $12,000.00. The loan will be paid back over 25 years with monthly payments of $558.21. If the interest rate is 3.8% compounded monthly, what would the unpaid balance be immediately after the twenty-ninth payment? What is the equity after the twenty-ninth payment?
The unpaid balance would be $. (Round to 2 decimal places.)
The equity would be $
An amortized loan refers to a type of loan that is repaid over a set period through regular installment payments. These payments are usually equal and consist of both principal and interest. As the loan is paid off, the proportion of the payment going towards the principal balance increases, while the portion going towards interest decreases. This ensures that the loan is fully paid by the end of the term.
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