Stu Reese has a $150,000 7 ½% mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of:

Name: Stu Reese has a $150,000 7 ½% mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The interest for the first month is calculated as $150,000 * 7.5% / 12 = $937.50. The principal reduction is $1,010.10 - $937.50 = $72.60. The new balance is $150,000 - $72.60 = $149,927.40.

Stu Reese Has a $150,000 7 ½% Mortgage