Purchase Solution

Principal balance on a particular loan

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I have a 30-year \$100,000 mortgage loan with an APR of 6% and monthly payments. In 12 years I will sell my home and pay off the mortgage. What is the principal balance on the loan?

Solution Summary

Calculates the principal balance on the loan.

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Note: For the following answer the abbreviations have the following meanings

PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an Annuity

They can be read from tables or calculated using the following equations
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
PVIF( n, r%)= =1/(1+r%)^n

I have a 30-year \$100,000 mortgage loan ...

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