Suppose you take out a 30-year mortgage for $100,000 with annual payments.The interest rate on the mortgage is 8%.When you have paid off half the mortgage,so that the value of the remaining payments is reduced to $50,000,how many more payments need to be made?

Question

Quizplus · Accepted Answer

Solve first for the annual payment: $100,000 = PMT(1 / 0.08 − 0.08 × 1.08³⁰). PMT = $8,882.74PV = PMT [(1 / r) − 1 / r(1 + r)^t]$50,000 = 8,882.74{1 / 0.08−1 / (0.08 × 1.08^t}Either use logs or trial and error to find^t ≈ 8

Suppose You Take Out a 30-Year Mortgage for $100,000 with Annual