Question

Anand purchased a 30 year mortgage at 6.00% convertible monthly. The amount of the loan is for $200,000. Anand plans to make the required monthly payments. The first month that his outstanding balance is $100,000 or less, he plans to purchase a larger home. How many monthly payments will Anand need to make?

Answer 1

Answer:

252

Explanation:

In this question we use the PMT and the NPER formula which is to be shown in the attachment below:

Given that,  

Present value = $200,000

Future value or Face value = $0

RATE = 6% ÷ 12 = 0.5%

NPER = 30 years × 12 months = 360 months  

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after solving this, the pmt is $1,199.10

Now NPER is

Given that,  

Present value = $200,000

Future value or Face value = $100,000

RATE = 6% ÷ 12 = 0.5%

PMT = $1,199.10

The formula is shown below:  

= NPER(RATE;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the pmt is 251.82