Question

Ciara and Sydney want to buy 209,000 home. They pay 15% as a down payment, and take out a 30 year loan at 6.05% interest for the balance. How much of the first payment is interest?

Answer 1

Answer: $10,747.83

Explanation:

The first interest payment is based on the full amount of the loan because no principal has been paid off yet.

Loan is:

= 209,000 * ( 1 - 15%)

= $177,650

Interest = 177,650 * 6.05%

= $10,747.83