Answer:
Principal $500,000
Interest payment is $69,580
Explanation:
Loan Payment Includes the principal and interest payment.
Loan Payment per month = r ( P ) / 1 - ( 1 + r )^-n
r = rate per period = 5.25% per year = 5.25%/12 per month
n = number of payments = 60 months
P = Loan Amount = $500,000
P = 5.25%/12 ( $500,000 ) / 1 - ( 1 + 5.25%/12 )^-60
P = $9,493 per month
Total Payment = $9493 x 60 = $569,580
Principal Payment = $500,000
Interest Payment = $569,580 - $500,000 = $69,580
