Question

Kate and ashton have been approved for a $200,000 15-year mortgage with apr of 5.5%. How much is thier first monthly payment will go to interest

Answer 1

First monthly payment will go to interest is $916.66

Explanation:

Given : Kate and ashton have been approved for a $200,000 15-year mortgage with APR of 5.5%.

To find : How much is their first monthly payment will go to interest?

Solution :

Using interest formula,

`I=P* R* T`

Where, I is the interest

P is the principal P=$200000

R is the rate R=5.5%=0.055

T is the time T=1 month

Substitute the values in the formula,

`I=200000* (0.055)/(12)* 1`

`I=200000* 0.004583* 1`

`I=916.66`

Therefore, First monthly payment will go to interest is $916.66

Answer 2

916.60 will go to interest the first month.

The monthly interest rate is found by calculating

(5.5/100)/12 = 0.004583

Multiplying this by the amount of principal, we have

200000*0.004583 = 916.60