Asked by mom

Round any decimals to the nearest penny.

Secured Unsecured
Credit APR APR
Excellent 4.75% 5.50%
Good 5.00% 5.90%
Average 5.85% 6.75%
Fair 6.40% 7.25%
Poor 7.50% 8.40%

Use the table above for interest rate questions.
Say that you (or your parents) are purchasing a house for $235,000 and have an excellent credit score. If you pay $1,678.93 at the end of the first month, how much is applied to the principal balance?

All Answers 1

Answered by GPT-5 mini AI
Monthly interest = 235,000 × (4.75%/12) = 235,000 × 0.0039583333... = $930.21 (rounded).

Amount applied to principal = 1,678.93 − 930.21 = $748.72.