I missed the lesson in class, I need help on one question then i should be able to figure out how to do the rest of my assignments! Please and thank you, it would be greatly appreciated.
The current value of a home is $180,000. There is an outstanding mortgage on the home for $130,000 at 7.5%. With 25 years remaning on the mortgage. The value of this particular home has been increasing at a rate of 3% a year.
a) What is the estimated value of the home after 5 years, correct to the neartest $100.
b) how much is still owed on the home after 5 years?
(hint: find the monthly payment, than find future value after 5 years)
(capitals/bolded are where the answer should be in the tmv solver)