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valkas [14]
3 years ago
11

Elijah just bought a house with a $72,000 mortgage at a 3.13% annual interest rate. How much of a $930 payment will go towards p

rincipal in the first month?
Mathematics
1 answer:
Mamont248 [21]3 years ago
6 0

Answer: $742.20

Step-by-step explanation:

The payments will be divided between an interest and a principal payment.

The interest payment will be based on the balance at the beginning of the period and the rest of the payment will be the mortgage.

Balance at beginning of period = $72,000

Interest payment = (3.13% * 72,000) / 12 months

= $187.80

Amount going towards principal:

= Total payment - Interest payment

= 930 - 187.80

= $742.20

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