Time Value of Money - Six Functions of a Dollar
Using Assessors’ Handbook Section 505 (Capitalization Formulas and Tables)
Appraisal Training: Self-Paced Online Learning Session

# Lesson 8: Mortgage Constant

In order to solve the following problems you will need to refer to AH 505 to look up the factors in the compound interest tables. Before you start, please print the problems using the "Print Questions" button below so you can work through the problems on your own. After you work through the problem, the solution can be viewed by clicking on the blue plus sign immediately following the question. Additionally, when you have completed all the problems, you may print all of the solutions using the "Print Questions with Answers" button below.

### Problem 1

Paul takes out a mortgage loan for \$500,000 at an annual rate of 6% with monthly payments for 30 years. What portion of the original loan amount will he pay each year?

Solution

### Problem 2

Lucy takes out a mortgage loan for \$500,000 at an annual rate of 6% with monthly payments for 15 years. What portion of the original loan amount will she pay each year?

Solution