Final answer:
To calculate the interest portion of the first monthly payment on a loan, you can use an amortization schedule. In this case, the interest portion of a $424.11 monthly payment on a $67,000 loan with a 5% annual interest rate for 20 years is $279.39.
Step-by-step explanation:
To calculate how much of the first monthly payment will go toward interest, we can use an amortization schedule. An amortization schedule shows the breakdown of each payment into principal and interest.
First, we need to calculate the monthly interest rate by dividing the annual interest rate by 12, and then convert it to a decimal. Let's assume the annual interest rate is 5%.
Monthly interest rate = (5% / 12) / 100 = 0.00417
We can use the formula for an amortization schedule to calculate the interest portion of each payment:
Interest portion = Principal balance * Monthly interest rate
Let's assume the loan term is 20 years (240 months) and the monthly payment is $424.11. Using the above formula, we can calculate the interest portion of the first monthly payment.
The principal balance for the first payment is $67,000, so the interest portion would be:
Interest portion = $67,000 * 0.00417 = $279.39
Therefore, the first monthly payment of $424.11 would have an interest portion of $279.39.