A Single Payment:

A Sequence of Payments: $,$ PYMT $=$ each payment amount in dollars

The home equity loan payment is based on $10\mathrm{.}49\%$ APR annualized over a $10-$year term.

If you borrow $$25,000$ at a rate of $10\mathrm{.}49\%$ and make monthly payments of $$218\mathrm{.}54,$ how much money will still be owed after $10$ years? Use the steps below to answer this question.

How much will $$25,000$ accrue to in $10$ years at the interest rate of $10\mathrm{.}49\%$ compounded monthly?

If you make monthly payments of $$218\mathrm{.}54,$ what is the future value of your payments, with the interest rate of $10\mathrm{.}49\%?$

The amount owed is the difference of steps I$)$ and II$).$

$2.$ How much is paid during the $10$ years?

$3.$ How much would the payment have to be for the debt of $$25,000$ to be paid off in the $10$ years?

$4.$ How long would it take to pay off the debts under the original plan if interest were $15\%$ on each loan?