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Amortization

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Amortization

Simple Interest Amortized Loan Formula

Unpaid Balance Formula

T is the number of years from the beginning of the loan to the present

Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loanfor the balance at for 30 years.

- Find her monthly payment.
- Find the total interest.
- Prepare an amortization schedule for the first two months of the loan.

Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loanfor the balance at for 30 years.

- 20 years have passed and Shirley wants to pay off the balance on her house. If there is no pre-payment penalty, what will it cost for Shirley to pay off the unpaid balance of her home loan?