Solve the problem.
-The monthly payments on a $68,000 loan at 7% interest for 30 years is $452.20. How much of the first monthly payment will go toward interest?

Question

Solve the problem. 
-The monthly payments on a $68,000 loan at 7% interest for 30 years is $452.20. How much of the first monthly payment will go toward interest?

Quizplus · Accepted Answer

The interest for the first month is calculated on the entire loan amount. To find this, use the formula for monthly interest: (Loan Amount) x (Annual Interest Rate) / 12. So, ($68,000) x (0.07) / 12 = $396.67.

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