Question

Solve for the amount of monthly interest that is owed on an interest-only loan based on the following facts: Loan amount $115,000, annual interest rate of 7%?

767?
671?
575?
7,475?

Answer 1

The annual interest owed is

... 7% × $115,000 ≈ $8050

The monthly interest owed is 1/12 that amount.

... (1/12) × $8050 ≈ $671

_____

Some calculators are able to use 7% as a factor; others require you use the decimal equivalent, 0.07.