Midtown Medical Supply has a warehouse with a 15-year mortgage of $120,000 at an annual interest rate of 6%.
a. Find the monthly mortgage payment.
b. During a month in which $300 of the monthly mortgage payment is principal, how much of the payment is interest?

Question

Midtown Medical Supply has a warehouse with a 15-year mortgage of $120,000 at an annual interest rate of 6%. 
a. Find the monthly mortgage payment.
b. During a month in which $300 of the monthly mortgage payment is principal, how much of the payment is interest?

Quizplus · Accepted Answer

The monthly mortgage payment can be calculated using the formula for a fixed-rate mortgage. For a $120,000 mortgage at 6% annual interest over 15 years, the monthly payment is approximately $1012.63. If $300 of the payment is principal, then $712.63 is interest.

Midtown Medical Supply Has a Warehouse with a 15-Year Mortgage