Solve the problem. Round to the nearest cent as needed.
-The monthly payments on a $79,000 loan at 14% annual interest are $982.76. How much of the first monthly payment will go toward interest?
A) $921.67
B) $845.17
C) $137.59
D) $1106.00

Question

Quizplus · Accepted Answer

The interest for the first month is calculated on the initial loan amount. At 14% annual interest, the monthly interest rate is 14% / 12 = 1.1667%. The interest for the first month is $79,000 * 1.1667% = $921.67.

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