Given that
starting outstanding balance = $150000
rate of interest = 7.5% per year
so rate of interest for 1 month = (7.5/12)% = 0.635%
outstanding balance before 1st monthly payment = starting outstanding balance + 0.625% of interest on starting outstanding balance
= 150000 + (0.625 /100) × 150000
= 150000 + 937.5 = $150937.5
Reduction = outstanding balance after one month - first monthly payment
Reduction = $150937.5 - 1010.10 = 149927.40
so out of first payment of $1,010.10 , $937.5 goes towards interest and remaining $72.6 goes towards reduction of principal that is 150000 - $72.6 = 149927.40.
so correct option is B that is $149927.40.
Answer:
C
Step-by-step explanation:
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Answer:</h2>
A GIRL ON HERE NAMED SAMI32390
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Step-by-step explanation:</h2>
Your diagram doesn't clearly define what values correspond to what, can you explain.
