Final answer:
To calculate the real-world last payment for a 15-year loan with monthly payments amortized at 6% APR on $150,000, you can use the formula for the future value of an ordinary annuity.
Step-by-step explanation:
To calculate the real-world last payment for a 15-year loan with monthly payments amortized at 6% APR on $150,000, you can use the formula for the future value of an ordinary annuity. The formula is:
Future Value = R * ((1 + r)^n - 1) / r
Where R is the monthly payment, r is the monthly interest rate, and n is the total number of payments. In this case, R is the unknown, r is 0.06/12, and n is 15*12. Substituting the values into the formula will give you the real-world last payment amount to the penny.