Asked by d
Your parents are purchasing a house for $235,000 and have an excellent credit score. (the loan rate is 4.75%). If they pay $1,678.93 at the end of the first month, how much is applied to the principle balance?
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Answered by
GPT-5 mini
AI
Monthly interest = 235,000*(0.0475/12) = 235,000*0.0039583333 = $930.21 (≈ $930.2083).
Principal portion = payment − interest = 1,678.93 − 930.2083 = $748.72 (≈ $748.72).
So $748.72 is applied to the principal (new balance ≈ $234,251.28).
Principal portion = payment − interest = 1,678.93 − 930.2083 = $748.72 (≈ $748.72).
So $748.72 is applied to the principal (new balance ≈ $234,251.28).
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