You have just sold your house for $ 1 comma 000 comma 000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $ 800 comma 000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25 % (APR), how much cash will you have from the sale once you pay off the mortgage? g

cash received = $510194.55

Explanation:

given data

sold your house = $1000000

time t = 30 year  = 360 month

initial balance P = $800,000

mortgage currently exactly = 18½ years  = 138 months

interest rate r = 5.25 % = 0.525% per month

solution

first, we will get monthly loan payment is express as

C = P ÷         ...............1  

Put here  values

C = 800,000 ÷  

C = $ 4951.78

so that monthly payment is $ 4951.78

and

Balance after the 18.5 years will be

Balance  = $ 4951.78  ×  ×      

Balance after 18.5 year = $ 485287.64

Balance after 18.5 year  = $489805.45

but here we received here $1000,000 excess cash received is

so

cash received = 1000,000 - 489805.45

cash received = $510194.55

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