Question
Your have just sold your house for $ 1,050,000 in cash.Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of
Your have just sold your house for $ 1,050,000 in cash.Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $825,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR with semi-annual compounding), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)
a. What is the discount rate for the mortgage? The discount rate for the mortgage is ______%. (Round to four decimal places.)
b. What is the monthly mortgage payment? The monthly mortgage payment is $_______
c. What is the remaining balance on the mortgage? The remaining balance is $______
d. How much cash will you have from the sale once you pay off the mortgage? The amount of cash left over from the sale is $_____
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