The balance of the loan (value of z) at the end of month 3 is $348,845, which is the difference between the loan amount and the total payments made at the end of month 3.
Data and Calculations:
Principal Loan = $350,000
Period of loan = 30 years
Interest rate = 5.5%
Monthly Payment = $1,987.26
Amortization Schedule:
Payment # Payment Interest Debt Payment End Balance
0 $350,000.00
1 $1,987.26 $1,604.17 $383.09 $349,616.91
2 1,987.26 1,602.41 384.85 $349,232.06
3 1,987.26 1,600.65 386.61 $348,845.45
Total $5,961.78 $1,154.55
Thus, the Balance at the end of the third month (z) is = $348,845.45 ($350,000 - $1,154.55).
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