You want to take out a $267,000 mortgage (home loan). The interest rate on the loan is 5.8%, and the loan is for 30 years. Your monthly payments are $1,566.63.

How much will still be owed after making payments for 5 years?

To determine how much will still be owed on the mortgage after 5 years of monthly payments, we need to follow these steps:

### Step 1: Calculate the remaining balance using the amortization formula.
The formula for the remaining balance $ B $ on a loan after $ n $ payments is:

\[
B = P \left( \frac{(1 + r)^N - (1 + r)^n}{(1 + r)^N - 1} \right)
\]

Where:
- $ P $ is the loan amount (i.e., $267,000)
- $ r $ is the monthly interest rate (annual rate divided by 12), so $ r = \frac{5.8\%}{12} = \frac{0.058}{12} $
- $ N $ is the total number of payments (30 years × 12 months = 360 payments)
- $ n $ is the number of payments made after 5 years (5 years × 12 months = 60 payments)

### Step 2: Substitute the values into the formula.

\[
r = \frac{0.058}{12} = 0.0048333
\]

\[
N = 360, \quad n = 60
\]

Substitute these values into the amortization formula and calculate the remaining balance.

Let me compute that for you.After making payments for 5 years, the remaining balance on the mortgage will be approximately **$247,833.06**.

Would you like further details on how this was calculated or have any other questions?

Here are 5 related questions:
1. How much total interest will be paid over the 30 years if the loan is paid off as scheduled?
2. How much interest have you paid after 5 years of payments?
3. What happens to the monthly payment if the interest rate changes?
4. How much of your monthly payment goes toward principal and interest in the first 5 years?
5. How long would it take to pay off the loan if you made extra payments?

**Tip:** Making extra payments toward the principal can significantly reduce the total interest paid over the life of the loan.

You want to take out a $267,000 mortgage (home loan). The interest rate on the loan is 5.8%, and the loan is for 30 years. Your monthly payments are $1,566.63. How much will still be owed after making payments for 5 years?

Learn how to calculate the remaining balance of a $267,000 mortgage after 5 years of payments with an interest rate of 5.8%. Understand key financial concepts like amortization and interest calculations in this step-by-step guide. Suitable for high school students in Grades 11-12.

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