Final answer:
Of the first monthly payment of $999.75 on a $186,000 30-year 5% mortgage, $775.62 would go toward interest.
Step-by-step explanation:
To find out how much of the first monthly payment of $999.75 would go toward interest on a $186,000 30-year 5% mortgage, you need to calculate the interest part of the payment for the first month. First, you determine the monthly interest rate by dividing the annual rate by 12. In this case, 5% annual interest becomes 0.05/12 per month, which is approximately 0.004167.
Next, you calculate the interest for the first month by multiplying the outstanding balance by the monthly interest rate: $186,000 * 0.004167 = $775.62. So, out of the first monthly payment of $999.75, a total of $775.62 would go toward interest.