## Related questions with answers

A young couple buying their first home borrow $\$ 85,000$ for $30$ years at $7.2 \%$ compounded monthly and make payments of $\$ 576.97$. After $3$ years, they are able to make a one-time payment of $\$ 2000$ along with their $36$th payment.

(a) Find the unpaid balance immediately after they pay the extra $\$ 2000$ and their $36$th payment.

(b) How many regular payments of $\$ 576.97$ will amortize the unpaid balance from part (a)? Give the answer to one decimal point.

( c ) How much will the remaining debt be after the number of full payment periods in (b) is made? How much extra must be included with last full payment to pay off the debt?

(d) How much will the couple pay over the life of the loan by paying the extra $\$ 2000$?

Solution

Verified**a)**

The objective of this exercise is to calculate the **unpaid balance** of an amortized loan inmediately after an specific payment.

*How can I calculate the unpaid balance of an amortized loan?*

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