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Calculate the real-world last payment to the penny for a 15-year loan with monthly payments amortized at 6% APR on $150,000.

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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.

User Tamil Selvan
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