Question

Nevaeh took out a 20-year loan for $155,000 at 3.6% interest, compounded monthly. If her monthly payment on the loan is $906.93, how much of her first payment went toward note reduction?

A. $441.93

B. $465.00

C. $906.93

D. $326.49

Answer 1

A. $441.93

Explanation:

Given that Nevaeh took out a 20-year loan for $155,000 at 3.6% interest, compounded monthly and her monthly payment on the loan is $906.93

Let us calculate EMI schedule for 155000 for 20 years

Out of EMI 906.93, 441.93 will be for note reduction.

There are four options given as

A. $441.93

B. $465.00

C. $906.93

D. $326.49

Correct answer is option A) 441.93$