Question

Becky takes out a 25-year mortgage for which her monthly payment is $1200. During the early years of the mortgage, most of each payment is for interest and the rather small remainder for principal. As time goes on, the portion of each payment that goes for interest decreases while the portion for principal increases, as shown in the following graph: 1300 1200 1100 1000- Interest 900 800- 700- 600 500 400 300- 200 Principle 100 5 10 15 20 25 a) Approximately how much of the $1200 monthly payment goes for interest in year 5? $ b) In what year will the monthly payment be equally divided between interest and principal? Year Submit Question

          Becky takes out a 25-year mortgage for which her monthly payment is $1200. During the early years of the mortgage, most of each payment is for interest and the rather small remainder for principal. As time goes on, the portion of each payment that goes for interest decreases while the portion for principal increases, as shown in the following graph:
1300
1200
1100
1000-
Interest
900
800-
700-
600
500
400
300-
200
Principle
100
5
10
15
20
25
a) Approximately how much of the $1200 monthly payment goes for interest in year 5?
$
b) In what year will the monthly payment be equally divided between interest and principal?
Year
Submit Question

Becky takes out a 25-year mortgage for which her monthly payment is 1200. During the early years of the mortgage, most of each payment is for interest and the rather small remainder for principal. As time goes on, the portion of each payment that goes for interest decreases while the portion for principal increases, as shown in the following graph:
1300
1200
1100
1000-
Interest
900
800-
700-
600
500
400
300-
200
Principle
100
5
10
15
20
25
a) Approximately how much of the1200 monthly payment goes for interest in year 5?
b) In what year will the monthly payment be equally divided between interest and principal?
Year
Submit Question

Added by Ashley L.

Question

Please give Ace some feedback