Respuesta :
Answer:
Principal element is $475.43
Interest payment is $390
Step-by-step explanation:
The amount of interest paid in month one is 4%*$117,000*1/12=$390
The interest is calculated based on the annual interest rate of 4% apportioned to reflect one month interest by multiplying by 1/12
The principal element of monthly payment is the monthly payment minus interest.
principal paid in month one=$865.43-$390=$475.43
Ultimately,$475.43 goes toward reducing her loan balance while the $390 is interest on loan
Answer:
Interest paid in one month is $390
The balance reduced is $475.43
Step-by-step explanation:
The interest for month one is found by multiplying the balance of the loan by the monthly interest rate.
0.0412⋅117000=$390
If her monthly payment is $865.43 and $390 is interest, then
865.43−390=$475.43
.
Therefore, the balance of the loan is reduced by $475.43.
