Question

cynthia purchased a condo for $180,000. her monthly payments are $900 a month and the mortgage loan has an annual percentage rate of 4%. What part of cynthias first monthly payment is going to pay Down the principal of her loan?

Answer 1

$300

Step-by-step explanation:

Monthly installments are $900

The first-month interest will Be?

Monthly interest will be yearly interest divided by 12 months

=4/100 /12 months

=0.04 /12

=0.0033333 per month.

First-month interest will be

=0.003333 x 180,000

=$600

Part of monthly interest that goes to pay the principal will be

$900 -$600

=$300