1. A couple took out a 30-year mortgage 10 years ago. At that time, the mortgage was $305,300.00, with 4.20% APR and monthly compounding of interest. Today, the couple has been offered $331,300.00 for their house. If the couple accepts the offer, how much cash will they take from the deal? The cash will be the difference between the sell price and what is owed on the loan.
2. A family takes out a mortgage for $291,000.00 from the local bank. The loan is for 30 years of monthly payments at a 5.28% APR (monthly compounding). What will the family’s balance be on the mortgage after 9.00 years?