1. The problem statement, all variables and given/known data James bought a house worth $308,000.00 and financed 85% of that amount. He has a 30-year loan at 4.82%. How much will he owe on the house after 12 years? Then find the equity that James has from Item #4 above. His equity is the difference between the new value of the house which has increased by 1.5% compounded annually for the 12 years, and the amount that he still owes after 12 years. 2. Relevant equations payment into a sinking fund R=S*i/((1+i)^n -1) Future Value P=R*(1-(1+i)^-n)/i Present value P=R*(1-(1+i)^-n)/i 3. The attempt at a solution 308,000.00 * 85/100 = 261,800.00 r = 4.82% / 12 = 0.00402 --> the monthly payment I think i am suppose to plug the values into one formula first then another. A=R*((1+i)^n -1)/i 261.800((1+.0482/12)^360-1)/.0482 Not sure if that is even correct.... Anyone know how to solve this?