Use an amortization table to solve the problem. Round to the nearest cent.
-The monthly payments on a $76,000 loan at 12% annual interest are $836.76. How much of the first monthly payment will go toward interest?
A) $100.41
B) $736.35
C) $760.00
D) $912.00

Question

Quizplus · Accepted Answer

To calculate the interest portion of the first monthly payment on a loan, you use the annual interest rate and the initial loan balance. The formula to calculate the interest for the first month is: (Annual Interest Rate / 12) * Initial Loan Balance. With an annual interest rate of 12% and an initial loan balance of $76,000, the calculation is: (0.12 / 12) * $76,000 = $760.00. Therefore, $760.00 of the first monthly payment will go toward interest.

Use an Amortization Table to Solve the Problem