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Business, 12.03.2021 15:40 rikac72791
Loan Future Value
We can also find the remaining balance on a mortgage (see video). To do this, we solve for the future value based on time relative to loan origination.
Imagine you purchased a home 5 years ago and are wondering how much principal you have remaining on your mortgage. This means the loan is five years old, so you would like to find the future value where N is 5.
Consider the example below and select the calculator functions that fit this description.
A 30-year loan was taken out 8 years ago for $320,000. The interest rate on the loan 3.7% with monthly compounding. How much principal remains to be paid off on this loan?
N=96
I/Y=0.3083
PV= 320,000
PMT= - 1,472.90
FV= CPT
N=360
I/Y=0.3083
PV= 320,000
PMT= - 1,472.90
FV= CPT
N=8
I/Y=3.7
PV= 320,000
PMT= - 1,472.90
FV= CPT
N=8
I/Y=3.7
PV= 320,000
PMT= 0
FV= CPT
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Loan Future Value
We can also find the remaining balance on a mortgage (see video). To do this, we...
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