Respuesta :
Answer:
Her balance would be $ 90,931.84.
Step-by-step explanation:
The future value of a loan is,
[tex]F.V.=P.V.(1+i)^n-\frac{Pmt}{i}[((1+i)^n-1][/tex]
Where, P.V. is the present value of the loan,
i is the rate per period,
Pmt is Payment per period,
n is the number of periods,
Here, P.V. = $ 115000,
Also the payment is paid per month,
And, annual rate of interest = 7.2 % = 0.072,
So, the rate per period ( per month ) = [tex]\frac{0.072}{12}=0.006[/tex]
( 1 year = 12 months )
Pmt = $827.53
Number of years = 25 - 15 = 10 years ( 25-year loan and we have to find her balance when 15 years left )
So, the number of periods, n = 12 × 10 = 120 months
Hence, by the above formula her balance when 15 years left is,
[tex]F.V.=115000(1+0.006)^{120}-\frac{827.53}{0.006}[(1+0.006)^{120}-1][/tex]
[tex]=\$ 90931.8361081\approx \$ 90931.84[/tex]
