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suter [353]
3 years ago
6

The Williams family has a $234,900 mortgage at 9%. Their monthly payment is $1890. What is the new principal after the first pay

ment to the nearest hundredth of a dollar?
Mathematics
1 answer:
Marta_Voda [28]3 years ago
8 0

Answer:

$234 771.75

Step-by-step explanation:

Data:

Principal = $234 900

       APR = 9 % = 0.09

Payment = $1890

Calculations:

1. Monthly interest rate

r = 0.09/12 = 0.0075

2. Interest for first month

Interest = 234 900 × 0.0075 = $1761.75

3. New Principal

       Principal = $234 900.00

      + Interest =  <u>      + 1761.75 </u>

End of month =    236 661.75

     - Payment =   <u>    - 1890.00 </u>

New principal = $234 771.75

The new principal is $234 771.75

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