A homeowner has five years of monthly payments of $1400 before she has paid off her house.If the interest rate is 7% APR,what is the remaining balance on her loan?

Question

Quizplus · Accepted Answer

The remaining balance can be calculated using the formula for the present value of an annuity. With 60 payments of $1400 and a monthly interest rate of approximately 0.5833% (7% annual rate divided by 12), the present value (remaining balance) is approximately $70,703.

A Homeowner Has Five Years of Monthly Payments of $1400