Mackenzie Roth has a 30 year, 5% mortgage on his home. The current monthly payme

Question

Mackenzie Roth has a 30 year, 5% mortgage on his home. The current monthly payments for the mortgage, which has a current balance of $70,000, are $402.62 per month. He can now afford a $750 monthly payment. How long would it take him to pay off his mortgage by making a $700 monthly payment?

Jason Thomas has saved $4,000 towards a down payment on a new truck. He wants to have a total of $20,000 and plans to buy in 3 years. How much will he have to save at the end of each month if he can earn 5% on his savings?

Explanation / Answer

PV = 170,000 FV = 0 i = 5% PMT = 1,500 Solve for term or n n = 153 pmts of $1,500 and 1 last pmt of 1,048.37 for a total of 154 pmts

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