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Basic Question 14 of 15
Given that a 6%, 15-year, $100,000 mortgage has a payment of $843.86 per month, what is the amount of the interest component of the first monthly payment?
B. $500.00
C. $600.00
A. $400.00
B. $500.00
C. $600.00
User Contributed Comments 6
| User | Comment |
|---|---|
| pangar04 | Can someone explain how you get this answer? sorry im confused |
| abeeman924 | Simple interest payment calculation just use 12 months instead of semi-annual. $100,000 x 0.06 = $6,000 $6,000/12 (months = $500 worth of interest per month on your mortgage payment The other $343.86 out of the total $843.86 is a return of principal. |
| Yrazzaq88 | 0.06 / 12 = 0.005 0.005 x 100,000 = $500 per month |
| mbowa | Thanks abeeman924, i was confused as well |
| lal191561 | nice questions |
| raulmartin | Thanks for the help |
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