# Quiz 15: Mortgage Calculations and Decisions

We are asked to calculate the following variables: Calculate the original loan size of a fixed-payment mortgage if the monthly payment is \$1,146.78, the annual interest is 8.0%, and the original loan term is 15 years. Using a financial calculator: You can solve this using a financial calculator by doing the following:- Solve for PV = \$1 19,999.74 The original size of the loan is \$120,000 when we round to the nearest whole dollar.
We are asked to calculate the following variables: For a loan of \$100,000, at 7 percent interest for 30 years, find the balance at the end of 4 years and 15 years. Using a financial calculator: You can solve this using a financial calculator by doing the following: Table 1: Solve for PMT = \$665.30 First we need to calculate the loan payment. After plugging our values into the financial calculator we received the output payment as \$665.30. Using your financial calculator, please enter the values as shown in Table 2. Table 2: Solve for PV= \$95,474.19 Now that we have the loan payment amount of \$665.30, we can calculate the balance at the end of four years, which is \$95,474.19 Using your financial calculator, please enter the values as shown in Table 3. Table 3: Solve for PV = \$74,089.59 Now that we have the loan payment amount of \$665.30 we can calculate the balance at the end of 15 years, which is \$74,089.59. Using the loan balances that we calculated in the first two tables, we solved that the balance at the end of 4 years was \$95,474.19, and the balance at the end of 15 years was \$74,089.59.