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6 votes
6 votes
How do we find the difference between principal and interest?

User Joao Da Silva
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1 Answer

23 votes
23 votes

Answer:

Principal is the money that you originally agreed to pay back. Interest is the cost of borrowing the principal.

Explanation:

First, calculate the interest portion of the payment by multiplying the mortgage balance by the annual interest rate. Then divide the result by 12, for the number of months in the year:

User Invisiblerhino
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