Agh I can't remember what I'm doing wrong with this Mortgage Q

H

hipster_ trustfund_ baby

New member
Joined
Nov 21, 2011
Messages
0
Reaction score
0
Here is the Q, from Schweser:

Recently purchased a home for $300,000 on which he made a down payment of 100,000. He has a 30-year mortgage to finance the balance on which he pays a fixed annual rate of 6%. If he makes regular, fixed monthly payments, what loan balance remains after the 48th payment?

Help
 
I think Ive got this one… Since down payment is 100k, this is what Id enter in calculator
[PV] -200,000
[INT] .5
[N] 360 (30 years x 12 months/yr)
[FV] 0
Press CPT and then PMT. Then I believe you need the balance at the end of 4th year, so you would press 2nd, AMORT, P1 should be 1 and P2 should be 48, then scroll down to balance. That’s what Ive got. cant give you my answer cuz this is from my head
 
the loan balance = PV of remaining pmt. calculate pmt with the following values: pv=200,000, n=360, i=0.5%. you should get 1199.10 monthly pmt (312 pmt left after 48th pmt). now calculate pv with the following values: pmt=1190.10, n=312, i=0.5%. should get 189228.9
 
december4thplease wrote:I think Ive got this one… Since down payment is 100k, this is what Id enter in calculator
[PV] -200,000
[INT] .5
[N] 360 (30 years x 12 months/yr)
[FV] 0
Press CPT and then PMT. Then I believe you need the balance at the end of 4th year, so you would press 2nd, AMORT, P1 should be 1 and P2 should be 48, then scroll down to balance. That’s what Ive got. cant give you my answer cuz this is from my head
i didn’t know the calculator could do such miracles.
 
You must log in or register to reply here.
Back
Top