Find the unpaid balance and regular monthly payment

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Reference no: EM131933616

This problem is a complex financial problem that requires several skills, perhaps some from previous sections.

Clark and Lana take a 30-year home mortgage of $122,000 at 7.7%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1000per month.

(a) Find their regular monthly payment. (Round your answer to the nearest cent.)

(b) Find the unpaid balance when they begin paying the $1000. (Round your answer to the nearest cent.)

(d) How much interest will they save by paying the loan using the number of payments from part (c)? (Round your answer to the nearest cent.)

Reference no: EM131933616

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