Question

If anyone could help with with the rest of the test i would appreciate it! Your parents are buying a house for $187,500. They have a good credit rating, are making a 20% down payment, and expect to pay $1,575/month. The interest rate for the mortgage is 4.65%. How much interest is accrued at the end of the second month?

$511.16


$561.25


$545.03


$577.40

Answer 1

$577.40

Explanation:

187500 x .2 = 37500 downpayment

187500-37500 = 150000 financed

150000 x .0465/12 = 581.25 1st month interest

150000 + 581.25 = 150581.25

150581.25 - 1575(payment) = 149006.25

149006.25 x .0465/12 = $577.40 2nd month interest