Amir has obtained a $250,000 mortgage.The mortgage is amortized over 25 years and the term of the mortgage is 25 years.The mortgage interest rate is 9% compounded annually.Amir will begin making annual payments of $25,451.56 at the end of the year.How much of Amir's third payment is interest?

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To calculate the interest portion of Amir's third payment, we first need to determine the remaining balance after the first two payments. The mortgage interest is compounded annually at a rate of 9%.1. After the first year, the interest on the mortgage would be 250,000 * 0.09 = $22,500. So, the total amount owed at the end of the first year is 250,000 + 22,500 = $272,500. Amir then makes a payment of $25,451.56, reducing the balance to 272,500 - 25,451.56 = $247,048.44.2. For the second year, the interest on the remaining balance is 247,048.44 * 0.09 = $22,234.36. The total amount owed at the end of the second year is 247,048.44 + 22,234.36 = $269,282.80. Amir makes another payment of $25,451.56, reducing the balance to 269,282.80 - 25,451.56 = $243,831.24.3. For the third year, the interest on the remaining balance is 243,831.24 * 0.09 = $21,944.81.Therefore, the interest portion of Amir's third payment is $21,944.81.

Amir Has Obtained a $250,000 Mortgage