Answer:
$89,418
Explanation:
It is important to realize that Ms. White has been honoring her mortgage payments for the 18 months that she owned the house.
So we can determine the amount of outstanding debt by constructing an amortization table.
Here, i will use a Financial Calculator to prepare the amortization table.
PV = $90,000
N = 20
I = 12
FV = 0
P/YR = 1
PMT = $11,172.93 (CALCULATED)
Period Principle Interest Payment Balance
Beginning $90,000
Year 1 End $373 $ 10,800 $11,173 $89,627
Year 2 End $417 $ 10,755 $11,173 $89,209
But for the Year 2 she only owned the house for 6 month (to 18 months).
Thus amount outstanding after 18 months is $89,418 ($89,627 - $209)
