Question

Christine has monthly loan payments of $1,857. Her loan is for $300,000 @ 6.3% interest. How much of her first payment goes towards interest?

Answer 1

The interest paid is $1575.

Explanation:

Given is:

Monthly loan payment = $1857

Loan amount = $300000

Rate = 6.3% annual

So, monthly rate will be =
`6.3/12/100=0.00525`

Hence, we will calculate the interest for month.

`0.00525*300000=1575` dollars

So, interest paid = $1575.

Principle paid =
`1857-1575=282` dollars