Mortgage Question - annuity/discount factor

[BigFrank]

Hi, can anybody help me work this out. A mortgage of 400,000 is taken out for 30 years at ta rate of 6%. (a) What's the annual repayment that's needed to clear the mortgage? (b) After 25 years how much will be left on the mortgage? Thanks in advance

 

[Deleted member 4993]

Hi, can anybody help me work this out. A mortgage of 400,000 is taken out for 30 years at ta rate of 6%. (a) What's the annual repayment that's needed to clear the mortgage? (b) After 25 years how much will be left on the mortgage? Thanks in advance

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[BigFrank]

Frank, did you at least look for the loan payment formula?
A frank answer please!

H, yes I did and I managed to work out the first part of the question
400,000 = annual repayment X{1-(1/.06 (to the power of 30)/0.06
400,000 = annual repayment X 13.765
Annual Repayment = 40000/13.765= 29,060

Not bad, huh?