a homeowner i s considering refinancing his home. the originalamount of the 30 y

Question

a homeowner i s considering refinancing his home. the originalamount of the 30 year loan was 250000 dollars at 12% compoundedmonthly. the owner ha made 10 years of payments. how much is theremaninging balance on the loan? Ok this is what I know. the present worth is 250,000. interest rate is 1% permonth=12%/12mo the number of periods, n is 360 months=12*30 but he paid 10*12=120 months of payments So I know I'm looking for what he didn't pay which is 360-120=240 months left over. a homeowner i s considering refinancing his home. the originalamount of the 30 year loan was 250000 dollars at 12% compoundedmonthly. the owner ha made 10 years of payments. how much is theremaninging balance on the loan? Ok this is what I know. the present worth is 250,000. interest rate is 1% permonth=12%/12mo the number of periods, n is 360 months=12*30 but he paid 10*12=120 months of payments So I know I'm looking for what he didn't pay which is 360-120=240 months left over.

Explanation / Answer

30 year

Loan Amount $250,000 Number of years

30 year

Interest rate (Compounded Monthly) 12% Calculating Monthly Payment(PMT): (Using MS-Excel "PMT"Function): Interest rate (Rate) 1% Number of Periods (Nper) 360 Present Value(PV) -$250,000 Monthly Payment (PMT) $2,571.53 Calculating Present Value of 120 payments : Interest rate (Rate) 1% Number of Periods (Nper) 120 Payment Amount (PMT) -$2,571.53 Present Value (PV) $179,236.98 Remaining balance on LoanAmount = $250,000 - $179,236.98                                                      = $70,763.02

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