How many monthly payments remain to be paid on an 8 percent mortgage with a 30-year amortization and monthly payments of $733.76, when the balance reaches one-half of the initial $100,000 amount?

Question

Quizplus · Accepted Answer

Using the mortgage formula for calculating the remaining months when the balance reaches half of the initial amount, we get:

$50,000 = $733.76 [1/.08-1/.08 (1.0067)^n]
n = 92 months

Therefore, approximately 92 payments remain to be paid. The best choice is C.

How Many Monthly Payments Remain to Be Paid on an 8