Sam took out a 30-year, $450,000, 4.125% loan 10 years ago. What is Sam's current principal balance, assuming that he makes monthly payments?

Question

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To find the current principal balance of Sam's loan, we can use an amortization formula or a financial calculator. Given that the loan is for 30 years (360 months) at an annual interest rate of 4.125%, and he has been paying for 10 years (120 months), we need to calculate the remaining balance after these payments. Using the loan balance formula or an amortization calculator, we find that after 10 years of payments, the remaining balance is closest to the option E) $356,019.

Sam Took Out a 30-Year, $450,000, 4