o Here is a formula for the equity built up after $k$ monthly payments:

Equity $=\frac{\text{A}\text{m}\text{o}\text{u}\text{n}\text{t}\text{B}\text{o}\text{r}\text{r}\text{o}\text{w}\text{e}\text{d}((1+r{)}^k-1)}{(1+r{)}^t-1}$

where $r$ is the monthly interest rate as a decimal and $t$ is the term in months.

Use this formula for a mortgage of $$125000$ at an APR of $7\mathrm{.}2\%.$ Assume that the term of the mortgage is $30$ years.

How much equity will you have halfway through the term of the loan?

Round your answer to the nearest cent.

equity halfway for $30-$year loan: $

Incorrect

What percentage of the principal is this?

$($Round your answer to one decimal place.$)$

percentage of the principal for $30-$year loan:

Incorrect

Suppose now that instead of a $30-$year mortgage, you have a $15-$year mortgage. Find your equity halfway through the term of the loan. What percentage of the principal is this?

Enter equity to the nearest cent and the percentage to one decimal place.

equity halfway for $15-$year loan: $

Incorrect

percentage of the principal for $15-$year loan:

IncorrecT