Answer:
His balance would be $123,692.06.
Step-by-step explanation:
Since, future Value of Loan Balance Formula is,
[tex]F.V.=P.V.(1+i)^n-\frac{Pmt[(1+i)^n-1}{i}[/tex]
Where,
P.V. is the principal amount of the loan,
i is the rate per period ( in decimals ),
Pmt is the payment per period,
n is the number of periods,
Here, P.V. = $155,000,
APR = 4.8 % = 0.048 ⇒ i = [tex]\frac{0.048}{12}=0.004[/tex],
Pmt = $888.15 per month,
Since, loan is 25-year,
And, we have to find out his balance when 17 years left,
Thus, the number of years for which the payment is paid = 25 - 17 = 8,
⇒ Number of periods, n = 12 × 8 = 96 months ( 1 year = 12 months ),
Hence, the future value of the loan is,
[tex]F.V.=155000(1+0.004)^{96}-\frac{888.15[(1+0.004)^{96}-1]}{0.004}[/tex]
[tex]=\$ 123692.057301\approx \$ 123692.06[/tex]
Therefore, his balance be with 17 years left would be $ 123,692.06.
