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Compounding Interest on a Mortgage

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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?

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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.

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From your Question:

N = 30 years x 12 = 360

r = 0.08/12 = 0.006667

PV = -150,000

Since the ...

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