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Math Help - Compounded Interest and Mortgage

  1. #1
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    Compounded Interest and Mortgage

    Hello

    This is my first post, and I have no idea whether or not my question will be answered.

    So this is my question:
    Ryan took out a 30 year mortgage for $160,000 at 9.8% interest compounded monthly. After he made 12 years of payments he decided to refinance the remaining loan for 25 years at 7.2% interest compounded monthly. What willl be the balance on their loan 5 years after the refinance?
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  2. #2
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    Since I have no idea WHY you're asking this; like, is it to learn HOW or is it
    simply that you want/need the answers; I'll give you this for now:

    Payments per month for 1st 12 years = 1380.5258....
    Owing end of year 12 = 139868.6628....

    Payments per month from refinancing = 1006.4791...
    Owing 5 years later = 127831.3301...

    If you need the HOW (then you're in class, or on-line course?),
    ya'll come back now, hear?
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  3. #3
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    Yeah I want to know how. I'm in class.
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  4. #4
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    formulas plz
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  5. #5
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    WHY do you need the formulas if you're in class?
    Are you saying you were given this problem out of the blue with no teaching or formulas?
    If so, have you tried to find formulas using Google?
    Have you done any work at all on this?
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  6. #6
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    Oh no I thought you were asking whether I attend a university or take courses online. I'm not in class I'm at home studying.

    I'm taking a summer course and the teacher didn't spend so much time teaching us this chapter. I tried using this formula: A=P(1+r/12)^12(t) and the long mortgage one but this question is very complex. I have a final exam tomorrow and I would really appreciate your help.
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  7. #7
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    Quote Originally Posted by Meera123 View Post
    Oh no I thought you were asking whether I attend a university or take courses online. I'm not in class I'm at home studying.

    I'm taking a summer course and the teacher didn't spend so much time teaching us this chapter. I tried using this formula: A=P(1+r/12)^12(t) and the long mortgage one but this question is very complex. I have a final exam tomorrow and I would really appreciate your help.
    That so? Why then did you state to Petedam:
    "I'm an 18 year old first year student in a university in Dubai"

    Anyhow, the "teaching" of WHICH formula to use and HOW to use them is almost impossible here:
    a classroom environment is required.
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  8. #8
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    Eh if you werent gonna help then you shouldnt have kept me waiting here

    anyway thanks
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