STATE OF INDIANA

27. What is the present value of a 30-year mortgage at a contract rate of 9.0% with monthly payments. The original loan is $90,000 and prepayment is assumed at the end of the 12th year. The market yield required by the lender is 12.0%. Answer: $73,588.84 based on the balance of $77,330.81 and the PMTs of $724.16 all discounted over 12 years at ... ................
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