i. To find out how much of the loan has been paid off, subtract the current loan balance from the original loan amount (after the downpayment).
ii. To calculate the total amount paid to the loan company so far, determine the monthly payment using the loan amount, interest rate, and loan term, then multiply by the number of payments made (10 years).
iii. To find out how much interest has been paid so far, subtract the amount paid off from the total amount paid to the loan company.
The original home price is $110,000. The downpayment is 10% of the home price:
Downpayment=0.10×110000=11000
Thus, the original loan amount is:
Original Loan Amount=110000−11000=99000
The current loan balance is $88,536. The amount of the loan that has been paid off is:
Loan Paid Off=99000−88536=10464
The monthly payment can be calculated using the formula for an amortizing loan:
Monthly Payment=1−(1+120.09)−36099000×120.09≈796.5764
The total payments made over 10 years (or 120 months) is:
Total Payments Made=796.5764×120≈95589.1669
The interest paid so far can be calculated by subtracting the amount paid off from the total payments made:
Interest Paid=95589.1669−10464≈85125.1669
- Amount of the loan paid off: 10464
- Total payments made: 95589.1669
- Interest paid so far: 85125.1669