Eugene Merzbacher obtains a 20-year, $102,550 mortgage at 11% on a house selling for $123,000. His monthly payment, including principal and interest, is $1058.32. How much of the first payment on the mortgage is applied to the principal?
$12.44
$224.11
$1058.32
$118.27
2007-07-10 11:42:41 · 9 answers · asked by Mark W 2 in Science & Mathematics ➔ Mathematics
One month's interest at 11% is:
102550*11/1200
= $940.04
Deducting this from the repayment of $1058.32 leaves $118.26.
The last answer is nearest.
2007-07-10 11:51:55 · answer #1 · answered by Anonymous · 1⤊ 0⤋
11% of $102,550 is $11280.50.
So monthly to pay off the interest alone is 11280.50/12
which equals $940.04
So the remainder of his payment ($118.28) is applied to the principal.
.
2007-07-10 18:49:21 · answer #2 · answered by tsr21 6 · 0⤊ 0⤋
It's actually none of the above. The true payment would be $1058.51 and the amount gone to principal at $118.47
2007-07-11 20:09:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Interest portion of the 1st installment:
$102,550.00 * 11%/12
$940.04
Answer: portion applied to repay the loan:
$1,058.32 - $940.04
$118.28
The answer is the 4th choice.
The basis for computing the interest portion on second installment would be $102,550.00 - $118.28 or $102,431.72.
2007-07-14 07:05:49 · answer #4 · answered by Jun Agruda 7 · 2⤊ 0⤋
$12.44. Its always the least amount on your first payment.
2007-07-10 18:51:43 · answer #5 · answered by Smoove Davey P 2 · 0⤊ 1⤋
$118.27
Use amortization schedule
2007-07-10 18:56:06 · answer #6 · answered by ironduke8159 7 · 0⤊ 0⤋
$118.27 is the closes answer
2007-07-10 18:53:09 · answer #7 · answered by Anonymous · 0⤊ 1⤋
$12.40 ACCORDING TO MY TEX INSTRUMENT CAL
$12.44 ACCORDING TO MY TEX INSTRUMENTS CALUATOR
2007-07-10 18:51:32 · answer #8 · answered by mister ed 7 · 0⤊ 2⤋
wow i really dont know!
2007-07-10 18:46:04 · answer #9 · answered by Anonymous · 0⤊ 4⤋