A student had a $20,000 loan at 4% for 10 years. The first payment was $202.49. How much interest and how much principal is paid in the first payment?

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Mathematics

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21 November, 18:47

A student had a $20,000 loan at 4% for 10 years. The first payment was $202.49. How much interest and how much principal is paid in the first payment?

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Reese Macias · Answer 1

This calculates the monthly payment of a $20k mortgage based on the amount of the loan, interest rate, and the loan length. It assumes a fixed rate mortgage, rather than variable, balloon, or ARM. Subtract your down payment to find the loan amount.

Many lenders estimate the most expensive home that a person can afford as 28% of one's income.

The calculator can be used to calculate the payment for any type of loan, such as real estate, auto and car, motorcycle, a house, debt consolidation, credit card debt consolidation, student loans, or business. Also remember to consider other home costs like insurance, taxes, PMI, and general maintenance costs.

If interest rates are low, consider refinancing. Also think about paying off your mortgage early, if possible, or paying down the principal at an accelerated rate.