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the monthly payments on a $97,000 loan at % interest for 20 years is $614.01. how much of the first monthly payment will go toward interest?

User Baski
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The amount of interest that will go towards the first monthly payment of a $97,000 loan at 4% interest for 20 years with a monthly payment of $614.01 is $3594.50.

Here's how we can calculate it:

Calculate the outstanding balance after the first payment: Subtract the monthly payment from the loan amount:

$97,000 - $614.01 = $93,405.99.

Calculate the first month's interest: Multiply the outstanding balance by the monthly interest rate:

$93,405.99 * (4% / 12) = $3594.50.

Therefore, $3594.50 of the first monthly payment will go towards interest.

The remaining $2545.51 will be applied to the principal, reducing the loan balance to $90,810.48.

Question

The monthly payments on a $97,000 loan at 4% interest for 20 years is $614.01. how much of the first monthly payment will go toward interest?

User Lkemitchll
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