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statuscvo [17]
3 years ago
12

Assume a loan balance of $174,000, a monthly payment of $1,395, and an interest rate of 8%. On next month's payment, how much of

the $1,395 will be applied to principal?
Mathematics
1 answer:
o-na [289]3 years ago
4 0
Given a loan balance of <span>$174,000 and an interest rate of 8%, the interest due for the next months payment is given by

\frac{0.08(174,000)}{12} \right)= \frac{13,920}{12} =\$1,160

Therefore, the amount out of the monthly payment of $1,395 that will be applied to the principal is $1,395 - $1,160 = $235.
</span>
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