Question

You borrow $35,800 for college and elect standard repayment of your loan at 4.04%. Calculate, correct to the nearest cent, the amount of your first payment that goes toward interest.

Answer 1

The amount of the first payment that goes toward interest is $1,447.92.

Step-by-step explanation:

To calculate the amount of your first payment that goes toward interest, you can use the formula:

Interest = Loan Amount * Interest Rate

In this case, the loan amount is $35,800 and the interest rate is 4.04%. So, the interest will be:

Interest = $35,800 * 0.0404 = $1,447.92

Therefore, the amount of your first payment that goes toward interest is $1,447.92.