Jim takes out a mortgage for 30 years at an interest rate of 2.49% and his monthly repayments are $986.50. What is the principal

Question

2 years ago

12

loan amount? Round your answer to the nearest ten thousand dollars. Do NOT round until you have calculated the final answer.

1 answer:

Svetllana [295] · Answer 1 · 2023-09-09T17:13:28+03:00

The principal loan amount will be 250000. P is denoted by the principal loan amount

<h3> What is the amount?</h3>

The complete repayment of money at the end of the period for which it was borrowed is referred to as the amount.

The given data in the problem is;

P is the principal loan amount

r is the rate of interest = 2.49%

n is the time period= of 30 years

The formula for the principal loan amount is found as;

$\rm P=M(1-(1+\frac{r}{12} )^{\frac{12}{n}$

$\rm P=986.50(1-(1+\frac{0.249}{12} )^{\frac{12}{30} }\\\\ P= 250000$

Hence the principal loan amount will be 250000.

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