Asked by Justin Paquet on May 09, 2024
Verified
A $25,000 home improvement (mortgage) loan charges interest at 6.6% compounded monthly for a three-year term. Monthly payments are based on a 10-year amortization and rounded up to the next $10. What will be the principal balance at the end of the first term?
Compounded Monthly
Interest calculation method where interest is added to the principal balance each month, and future interest accrues on the total amount.
Principal Balance
The outstanding amount of a loan or debt not including interest or other charges.
- Calculate the remaining balance of principal on a mortgage or loan after the term has ended.
- Calculate the necessary payments for several amortization cases of loans.
Verified Answer
KW
Learning Objectives
- Calculate the remaining balance of principal on a mortgage or loan after the term has ended.
- Calculate the necessary payments for several amortization cases of loans.
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