Solve the problem.
-The monthly payment on a(n)$75,000 loan at 12% annual interest is $789.92. How much of the first monthly payment will go toward the principal?

Question

Quizplus · Accepted Answer

The interest for the first month is calculated on the total loan amount at the annual rate divided by 12 (for 12 months). So, the interest for the first month is $75,000 * (12%/12) = $750. The total monthly payment is $789.92, so the amount going towards the principal is $789.92 - $750 = $39.92.

Solve the Problem. -The Monthly Payment on A(n)$75,000 Loan at 12% Annual Interest