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    Amortizing Loan. You take out a 30-year $100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

    Solution Preview

    First calculate the EMI for the mortgage.
    EMI = Loan amount * interest rate per period/(1-1/(1+interest rate per period)^number of payment periods))

    Loan amount = 100000
    Interest rate per period = 6%/12 = ...

    Solution Summary

    Calculations are done by hand, step by step.

    $2.19