Use an amortization table to solve the problem. Round to the nearest cent.
-The monthly payments on a $73,000 loan at 13% annual interest are $807.38. How much of the first monthly payment will go toward the principal?
A) $104.96
B) $790.83
C) $16.55
D) $702.42

Question

Quizplus · Accepted Answer

To find the amount going toward the principal, first calculate the interest for the first month: $73,000 * (13% / 12) = $791.04. Subtract this from the monthly payment: $807.38 - $791.04 = $16.34. Rounding to the nearest cent gives $16.55.

Use an Amortization Table to Solve the Problem