A borrower obtains a 30-year $210,000 amortized loan at a 6% interest rate. If his monthly payment is $1199.10, how much is applied to the principal balance in the first month?

Question

Mathematics

Alfonso Hess

10 July, 11:59

A borrower obtains a 30-year $210,000 amortized loan at a 6% interest rate. If his monthly payment is $1199.10, how much is applied to the principal balance in the first month?

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Answers (1)

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Mitchell Garcia · Answer 1

6545.61

Step-by-step explanation:

If the 6% interest rate is anual, the monthly interes rate is (1+6%) ^ (1/12) - 1=0.4868%

In adition, the equivalent present value to a monthly payment of 1199.10 is the amount applid tho the principal balace is 1199.10 - 210,000*0.4868%=968.91