2006-07-21 01:02:21 · 4 answers · asked by A N 1 in Education & Reference ➔ Homework Help
the 1st payments principle is about $1! the rest is interest! (then you're very last payment will be $1039 principle and $1 interest). seriously.
2006-07-21 01:10:12 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The KEY here is to first calculate monthly amount of interest. Assuming we're dealing with compound interest and not simple interest, we'd do this by dividing the rate by 12 to get a monthly rate.
Then we'd multiply this by our present value to get the $ amount of compound interest.
Any difference between the monthly payment and interest amount would be the portion that goes towards principle.
2006-07-21 05:16:02 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
0.071 / 12 = 0.0059 this is the interest rate per month
115,000 X 0.0059 = 680.42 interest for the first month
1040.09 - 680.42 = 359.67 principle payment first month
115000 - 359.67 = 114,640.33 balance of principle after pymt #1
2006-07-21 01:19:28 · answer #3 · answered by K R 1 · 0⤊ 0⤋
google the words "amortization schedule".
2006-07-21 01:10:14 · answer #4 · answered by marie 7 · 0⤊ 0⤋