When can I pay off my Loan?
Hi Everyone!
I've purchased house $600,000 with $40,000 down payment. I have a 25 year mortgage with an annual interest rate fixed at 6 percent, compounded annually.
Question--> If I pay $16,800 every 2 weeks (instead of monthly for 25 years), when will my loan be paid off? The answer should be less than 25 years, here is what I've done.
Loan = 600,000 - 40,000 = $560,000.
560,000*1.06^T = 16,800(1.06^T-1)/0.06 ---> then solve for T to get number of years.
Can anyone correct me and show me the correct/exact way to get to the answer? I have been struggling and trying this for long hours.
Thank you!
meilin~~:o
