There has to be a trick to make this quicker, but I just had to waste the time to post it because it’s been bothering me: Jim franklin bought a home for 300,000.00 and made a down pmt of 100,000.00. He obtained a 30 yr mortgage to finance the balance on which he pays an annual rate of 6%. If he makes regular, fixed monthly pmts, what LOAN balance will remain after the 48th pmt? a-$94,615 b-$186,109 c-$189,229 d-$192,444 Can’t remember to solve this without taking 30 minutes, ha.
It’s pretty simple. N = 30 x 12 I = 6/12 PV = 300,000 - 100,000 PMT = ? = 1,199 Now you know how much he pays monthly. Subtract 48 payments from the N. So N is 360 - 38. Answer is C.
N = 30 x 12 I = 6/12 PV = 300,000 - 100,000 PMT = ? = 1,199 once you do that. hit 2nd Amort P1=47 P2=48 Dwn-> BAL=189229
Or you could use the AMORT on a BA II Plus. After you do the TVM above, hit 2nd AMORT, enter: 1 for P1 (Beginning payment period) 48 for P2 (Ending payment period) Hit down arrow till you see BAL, that’s your ending balance. It can also give you the interest pmt for a capital lease