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When you purchased your house, you took out a 30-year annual payment mortgage with an interest rate of 5.5%. The annual payment on the mortgage is $12,000. You have just made a payment & have now decided to pay the mortgage off by repaying the outstanding balance.
Required:
a) What is the amount of the loan taken?
What is the payoff amount if:
b) You have lived in the house for 10 years?
c) You have lived in the house for 19 years?
d) You have lived in the house for 10 years and you decide to pay off the mortgage immediately before the 10th payment is due?
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