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Suppose you accumulated the following loans:
Monthly
Payments
Remaining Payments
Interest
Rates
Remaining
Balance
Mortgage
$875.19
24 years
7.5%
$116,753.51
Car Loan
$335.99
38 payments
8.95%
$11,082.11
a) As of the current loans, how much interest do you anticipate paying overall?
b) If you consolidate all your debt and refinance at 5.6% by taking out a new 24-year mortgage, what would your new monthly payment become?
c) How much would you pay in interest after consolidating?
| Monthly Payments | Remaining Payments | Interest Rates | Remaining Balance | |
| Mortgage | $875.19 | 24 years | 7.5% | $116,753.51 |
| Car Loan | $335.99 | 38 payments | 8.95% | $11,082.11 |
Solution
a) As of the current loans, how much interest do you anticipate paying overall is
For accumulated the following loans:
Monthly
Payments
Remaining Payments
Interest
Rates
Remaining
Balance
Mortgage
$875.19
24 years
7.5%
$116,753.51
Car Loan
$335.99
38 payments
8.95%
$11,082.11
For mortage another 24*12=240 payments remain.
so, for mortage interest is:$875.19*240*7.5/100=$18904.104
for car lone interest is:$335.99*38*8.95/100=$1142.70
overall interest is:$18904.104+$1142.70=$20076.805
b) If you consolidate all your debt and refinance at 5.6% by taking out a new 24-year mortgage, what would your new monthly payment become?
PV1 = PMT a n |i ((5.6/100)/12=0.004) n=24*12=288 PV1=$116,753.51
PV1 =PMTa 288 |0.004
PV1 =PMT(171.21)
PV1=$875.19(171.21)/288=520.28
monthly mayment is:$520.28
C) pay in interest after consolidating is:
$520.28*288=$149841.2799
interest after consolidating is: $149841.2799-$116,753.51=$33088
| Monthly Payments | Remaining Payments | Interest Rates | Remaining Balance | |
| Mortgage | $875.19 | 24 years | 7.5% | $116,753.51 |
| Car Loan | $335.99 | 38 payments | 8.95% | $11,082.11 |
