Question

Mario obtains a 30/7 balloon mortgage to finance $245,500 at 5.25%. How much principal and interest will he have already paid when his balloon payment is due?

$113,875.44

$112,519.78

$127,304.57

$216,988.63

Answer 1

wouldnt that just be the sum of his payments?

Answer 2

7*12 payments of .... how do you calculate payments?

Answer 3

84

Answer 4

84 payments, yes ..... how do you calculate a payment amount?

Answer 5

Idk on that part .

Answer 6

ive responded to enough of your posts that i know that you have some idea, or formula, or attempt

Answer 7

use a finance calculator like a TI BA

Answer 8

ive got enough practice determining a payment amount, i need to know what your process is :)

Answer 9

@amistre64 , ive noticed you use a different formula than what i use

Answer 10

i do :) it my own creation

Answer 11

:)

Answer 12

it simplifies to the textbook formula, but i find my version more intuitive is all

Answer 13

I just don't understand your formula that's all -.-

Answer 14

then lets use your formula; they are elementary the same

Answer 15

B=B[((1+i)^(n*t)-(1+i)^(m))/((1+i)^(n*t)-(1))

Answer 16

I just dont know what m = ?

Answer 17

m looks to be the number of months

Answer 18

for me:

remianing balance = loan compounded - payments(geo sum)

0 = loan compounded - payments(geo sum)

loan compounded = payments(geo sum)

loan compounded/(geo sum) = payments

245500k^(12*30)(1-k)/(1-k^(12*30)), k=1+.0525/12

abd we have 84 payments

84*245500k^(12*30)(1-k)/(1-k^(12*30)), k=1+.0525/12

http://www.wolframalpha.com/input/?i=84*245500k%5E%2812*30%29%281-k%29%2F%281-k%5E%2812*30%29%29%2C+k%3D1%2B.0525%2F12

Answer 19

P=245500
r=0.0525
n=12
i=r/n=0.0525/12=0.004375
t=30
m=7

Am I right ? :D

Answer 20

\[B\frac{(1+i)^{(n*t)}-(1+i)^m}{(1+i)^{(n*t)}-1}\]
\[254500\frac{(1+.0525/12)^{(12*30)}-(1+.0525/12)^{(84)}}{(1+.0525/12)^{(12*30)}-1}\]maybe

Answer 21

well, 245500

Answer 22

ohhh so m=84 :D

Answer 23

maybe ..... when i use 84 with that i end up with the 216 opt

Answer 24

i get the 113 with my thought; sum of the payments is how much youve paid in principal and interest

Answer 25

so 216 is the correct answer ?

Answer 26

i believe the correct answer is the sum of all the payments youve made; which is what i get as 113, i cant make sense of the formula you presented unless it might be fore the balloon payment

Answer 27

ok thank you !

Answer 28

216 989 is the balloon payment, or whats owed on it

113 875 is how much youve already spent

Answer 29

So, does that mean the answer is 216,989? I'm working the same problem and I'm a little confused. When I used the formula given to me, I got 216,988.63 (which can be rounded to 216,989). I'm just not sure if its the right answer.

Answer 30

the question is asking: how much has already been paid up when the ballon payment is due.

216k is what is owed, it is the balloon payment.

114k is what has already been spent in principal and interest.