Stu Reese has a $150,000 7 1/2% 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 1/2% mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of:
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

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

Stu Reese Has a $150,000 7 1/2% Mortgage