Question

A house is to be purchased for $180,000 with a 10% down payment, thereby fi nancing $162,000 with a home loan and mortgage. There are no "points" or other closing charges associated with the loan. A conventional 30-year loan is used at 7.5%, resulting in monthly payments of $1,132.73. The interest portion of the first monthly payment will be what?

Answer 1

Step-by-step explanation:

Principle amount is $162000

Rate is 7.5% or 7.5%/12 monthly

So formula is: Interest = Principle * Rate * Time / 100

Interest = 162000*7.5*1/12*1/100 = 1215000/12 = 1012.5

Interest = 1012.5