Question

Gary has an 80% LTV loan on his new $318,000 townhome with an annual interest rate of 4.125%. What’s his interest payment the first month?

Answer 1

Answer:

interest amount = $874.50

Explanation:

given data

LTV loan = 80%

amount =  $318,000

interest rate = 4.125% = 0.04125

to find out

interest payment the first month

solution

first we get here loan amount  that is

loan amount = 80% of $318,000

loan amount = $254,400

now we get here interest amount for 1st month that is

interest amount = loan amount × interest rate  × time period

put here value

interest amount = $254,400  × 0.04125 × $\frac{1}{12}$

interest amount = $874.50