Explore BrainMass

Explore BrainMass

    Compounding Interest on a Mortgage

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Question: I just bought a house and have a mortgage of $150,000. The mortgage is for 30 years and has a nominal rate of 8% (compounded monthly). After 36 payments (3 years) what will be the remaining balance of the mortgage?

    © BrainMass Inc. brainmass.com December 24, 2021, 7:08 pm ad1c9bdddf

    Solution Preview

    From your Question:

    N = 30 years x 12 = 360

    r = 0.08/12 = 0.006667

    PV = -150,000

    Since the ...

    Solution Summary

    Using the PV of annuity formula, this solution provides a detailed response to the given problem including the full amortization table. The full solution has been completed in an attached Word document and the amortization table is presented in an Excel document.