Kate and Ashton have been approved for a $200,000 15-year mortgage with an APR of 5.5%.How much of their first monthly payment will go to interest?

Question

Quizplus · Accepted Answer

To calculate the interest portion of the first monthly payment, use the formula: Interest = Principal x Rate / 12. Here, Principal = $200,000, Rate = 5.5% (or 0.055 as a decimal). So, Interest = $200,000 x 0.055 / 12 = $916.67.

Kate and Ashton Have Been Approved for a $200,000 15-Year