Answer-first summary for fast verification
Answer: c) $179,700
We first compute the monthly payment on the 30-year mortgage: - Monthly rate = 3.60% / 12 = **0.003** - Number of payments = **360** \[ PMT = \frac{200{,}000(0.003)}{1-(1.003)^{-360}} \approx 909 \] Then compute the remaining balance after 60 payments: \[ B_{60} = 200{,}000(1.003)^{60} - 909\left(\frac{(1.003)^{60}-1}{0.003}\right) \] Using \((1.003)^{60} \approx 1.1968\), the balance is approximately: \[ B_{60} \approx 179{,}700 \] So the nearest answer is **$179,700**.
Author: Manit Arora
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Q-508.3. After five years (60 months), which is nearest to the outstanding scheduled principal balance on a 30-year fixed rate mortgage (FRM) with an original balance of $200,000 and a mortgage interest rate of 3.60%?
A
a) $152,300
B
b) $165,800
C
c) $179,700
D
d) $182,500
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