A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The following figure includes two graphs: One shows the total amount paid (in monthly payments) as a function of time (in months), and the other shows the amount paid toward the principal of the debt as a function of time.

Draw a vertical segment whose length represents the outstanding principal of the debt (or the payoff amount of the loan) after 150 months.

Transcribed Image Text:

150 100 50 time 50 100 150 200 250 300 Months In thousands %24