Loan Future Value We can also find the remaining balance on a mortgage (see video). To do this, we solve for the future value based on time relative to loan origination.

Imagine you purchased a home 5 years ago and are wondering how much principal you have remaining on your mortgage. This means the loan is five years old, so you would like to find the future value where N is 5.

Consider the example below and select the calculator functions that fit this description.

A 30-year loan was taken out 8 years ago for $320,000. The interest rate on the loan 3.7% with monthly compounding. How much principal remains to be paid off on this loan?

N=96

I/Y=0.3083

PV= 320,000

PMT= - 1,472.90

FV= CPT

N=360

I/Y=0.3083

PV= 320,000

PMT= - 1,472.90

FV= CPT

N=8

I/Y=3.7

PV= 320,000

PMT= - 1,472.90

FV= CPT

N=8

I/Y=3.7

PV= 320,000

PMT= 0

FV= CPT

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Suppose that: 1. malaysia requires 1 hour of labor to produce 1 pound of rice and 2 hours of labor to produce 1 pencil; 2. indonesia requires 2 hours of labor to produce 1 pound of rice and 4 hours of labor to produce 1 pencil; 3. each country has 10,000 hours of labor to allocate between the production of rice and pencils; and 4. in autarky, malaysia consumes 5,000 pounds of rice and 2,500 pencils. which country has an absolute advantage in rice production? in pencil production? which country has a comparative advantage in rice production? in pencil production? will trade between the two countries be mutually beneficial?

Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)