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

Question

statuscvo [17]

4 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] · Answer 1 · 2022-01-03T15:55:26+03:00

o-na [289]4 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.
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