Question

Jill Barkely obtained a 25-year, $460,000 mortgage loan from University Savings and Loan Association with 6% interest. The monthly payment is $2,962.40. For the first payment, find the new balance to the nearest cent.

Answer 1

First find the interest
Principal×rate×time
460,000×0.06×(1÷12)=2,300

Second find the payment to principle
Monthly payment-interest
2,962.4−2,300=662.4

New balance
Previous balance-payment to principle
460,000−662.4=459,337.6..Answer

Hope it helps!