Your have just sold your house for
$1,000,000
in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of
$700,000.
The mortgage is currently exactly
18.50
years old, and you have just made a payment. If the interest rate on the mortgage is
6.25%
(APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.)
1. The discount rate is __________% (Round to five decimal places.)
2. The monthly mortgage payment is __________(Round to the nearest cent.)
3. The remaining balance is $__________ (Round to the nearest dollar.)
4. The cash that remains after payoff of the mortgage is $__________ (Round to the nearest dollar.)