You have just sold your house for $1,100,000 in cash. Your mortgage was original

Question

You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $700,000. The mortgage is currently exactly 18½ years old, and you have ust made a payment if the interest rate on the mortgage is 7.75% APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.) Cash that remains after payoff of mortgage is (Round to the nearest dollar) (Round to the nearest dollar.)

Explanation / Answer

Monthly payments in mortgage=PMT(7.5%/12,12*30,700000)=$4894.50

Loan oustanding after 18.5 years
=FV(7.5%/12,12*18.5,-4894.50,700000)=$451673.17

AFter paying off the loan, cash left=1100000-451673.17=$648,326.83

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