Question: A realtor sold a house on August 31, 1997, for $150,000 to a buyer in which a 20% down payment was made. The buyer took

A realtor sold a house on August 31, 1997, for $150,000 to a buyer in which a 20% down payment was made. The buyer took a 15-year mortgage on the property with an effective interest rate of 8% per annum. The buyer intends to payoff the mortgage owed in yearly payments starting on August 31, 1998.

(a) How much of the mortgage will still be owed after the payment due on August 31,2004 has been made?

(b) Solve the same problem by separating the interest and the principal amounts.

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a A i 8 P 120000 n 15 years P 150000 30000 120000 A P AP i n 120000 AP 8 15 120000 011683 1401955 R Y Remaining Balance in any year Y R Y A PA i n Y R ... View full answer

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