Question

You want to take out a $157,000 mortgage (home loan). The interest rate on the loan is 5.3%, and the loan is for 30 years. Your monthly payments are $871.83. How much will still be owed after making payments for 10 years? Round your answer to the nearest dollar.

Answer 1

$52,380

Explanation:

Remaining balance = Total loan amount - Total amount of interest paid

First, we need to calculate the total amount of interest paid. To do this, we can multiply your monthly payment by the number of months you have been making payments. Since you have been making payments for 10 years, and there are 12 months in a year, you have been making payments for a total of 10 * 12 = 120 months

Total amount of interest paid = Monthly payment * Number of months making payments

Total amount of interest paid = $871.83 * 120 = $104619.60

Now, we can calculate the remaining balance by subtracting the total amount of interest paid from the total loan amount.

$157,000 - $104619.60

= $52380