Suppose you purchase your first home by making a $10,000 down payment on a debt of $150,000. The bank charges an APR of 4.8% compounded monthly for a 30 year mortgage. Your monthly payment on the remaining $140,000 is $787.00.

(Do not enter $ sign and round answers to the nearest cent: Examples: 650.35, 12000.00)

a) You elect to payoff the entire loan after you pay 240 payments (120 payments remain). How much must you pay to payoff the loan at that time?

Answer: $

b) If the fair market value of the home at that time is $200,000, how much equity do you have in the home?

Answer: $

Answer rating: 100% (QA)

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