04-12-2011, 05:13 AM
If I understand correctly you will have paid monthly payments that totalled 8,450 for 17 years. Monthly payment = 8,450 / (12 x 17) = 41.42 per month.
The net present value (the amount borrowed) = 41.42 / (.07/12) * (1 - (1 + (.07/12))^(-12*17) = 4,933.13
N = 17 x 12, or 204
Interest = 7% / 12, or .5833%
PMT = 8,450
PV = 1,006,359
You can borrow the PV, 1,006,359
The net present value (the amount borrowed) = 41.42 / (.07/12) * (1 - (1 + (.07/12))^(-12*17) = 4,933.13
N = 17 x 12, or 204
Interest = 7% / 12, or .5833%
PMT = 8,450
PV = 1,006,359
You can borrow the PV, 1,006,359