Tutorial 6: Calculating the Original Principal Balance of a Mortgage

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Tutorial 6: Calculating the Original Principal Balance of a Mortgage

Enter the numbers in the boxes below. Do not enter a number in the box next to “Compute”.

Try with different numbers and see how the original balance changes.

Example 6: There are 12 payments a year of $859.68 a month. the original term of the loan is 360 months (30 years). The interest rate is 11% p.a.

What is the original principal balance of the mortgage? Answer = $90,265.02. As follows.