You want to take out a $304,000 mortgage (home loan). The interest rate on the loan is 4%, and the loan is for 30 years. Your monthly payments are $1,451.34. How much will still be owed after making payments for 15 years? Round your answer to the nearest dollar.

You want to take out a $304,000 mortgage (home loan). The interest rate on the loan is 4%, and the loan is for 30 years. Your monthly payments are $1,451.34. How much will still be owed after making payments for 15 years? Round your answer to the nearest dollar.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

You want to take out a $304,000 mortgage (home loan). The interest rate on the loan is 4%, and the loan is
for 30 years. Your monthly payments are $1,451.34. How much will still be owed after making payments for
15 years? Round your answer to the nearest dollar.
Answer: $
M

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