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

Question

Quizplus · Accepted Answer

Half of the $100,000 mortgage is $50,000. Let X be the number of payments remaining when the balance reaches $50,000.
Using the formula for monthly mortgage payments, we can solve for the remaining time period:

$733.76 = ($100,000 x 0.08/12) / (1 - (1 + 0.08/12)^(-12*30))
X = 92.13

Therefore, approximately 92 payments remain to be paid. The closest answer is Choice C.

How Many Monthly Payments Remain to Be Paid on an 8