How do you calculate the amount of interest paid with the first monthly payment
Added by Josefina R.
Step 1
To calculate the amount of interest paid with the first monthly payment, you need to know the principal amount, the annual interest rate, and the loan term. Here’s a step-by-step guide: Show more…
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Khushbu R.
Consider a $69,790, 20-year mortgage at interest rate 6% compounded monthly with a $500 monthly payment. a) How much interest is paid the first month? b) How much of the first month's payment is applied to paying off the principal? c) What is the unpaid balance at the end of 1 month? a) The interest paid the first month is $ (Round to the nearest cent as needed.) b) $ of the first month's payment is applied to paying off the principal. (Round to the nearest cent as needed.) c) The unpaid balance at the end of one month is $ (Round to two decimal places as needed.)
Gregory H.
Suppose you buy a home for $275,000, at an annual interest rate of 3.93%, and you intend to pay it back monthly for 20 years. The monthly rate is i = 0.0393/12 = 0.003275, and the number of instalments is n = 20 Ă— 12 = 240. The amount you should be paying back each month is then calculated as A = 275000 (i + i / ((1+i)^n - 1)) = 1656. 32. However, your local bank loans officer is either lazy or shifty (or both) and enters the monthly interest rate into the bank's loan calculator app as rounded to 0.0033. How does this affect your monthly repayments? You pay about $4.34 less each month. You pay 75c more each month. The difference is negligible (too small to worry about). You pay about $4.34 more each month.
Deaniss D.
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