Respuesta :
Answer:
cash will you have from the sale once you pay off the mortgage is $ 510194.55
Explanation:
given data
sold your house = $1000000
time t = 30 year = 360 month
initial balance P = $750,000
mortgage currently exactly = 18½ years = 138 months
interest rate r = 7.75 % = 0.646% per month
solution
we get here monthly loan payment that is
C = P ÷ [tex]\frac{1}{r} \times (1-\frac{1}{(1+r)^n})[/tex] ...............1
Putting values in formula we get
C = 750,000 ÷ [tex]\frac{1}{.00646} \times (1-\frac{1}{(1+0.00646)^{360}})[/tex]
C = $5374.12
so monthly payment is $5374.12
and here Balance after 18.5 year will be
Balance after 18.5 year = $5374.12 × [tex]\frac{1}{0.00646}[/tex] × [tex](1-\frac{1}{1.00646^{138}})[/tex]
Balance after 18.5 year = $489805.45
and
we received here $1000,000 excess cash received is
cash received = 1000,000 - 489805.45
cash received = $ 510194.55
