Final answer:
The first monthly interest payment of a $180,000 30-year 5% mortgage is $750 showing an error in the provided answer options as none match the calculated interest.
Step-by-step explanation:
To determine how much of the first monthly payment on a $180,000 30-year 5% mortgage goes toward interest, we must calculate the interest portion for the first month. The monthly interest rate is 5% per year, which is equivalent to 0.05/12 per month. Multiply the outstanding principal, which is $180,000, by the monthly interest rate to find the interest for the first month.
Interest for the first month: $180,000 × (0.05/12) = $750.
Therefore, option A, $750, is the amount of the first monthly payment that would go toward interest. However, since this is not one of the provided options, it might indicate an error in the options or the parameters given in the question as none of the options (A through D) correctly matches the calculated interest.