Question

A $100,000, 30 year fixed rate mortgage at 8% interest has monthly principal and interest payments of $733.76. What is the loan balance after the first payment?
1st Month:I = Po*r*t

r = (8%/12) / 100% = 0.0066666 = Monthly
% rate expressed as a decimal.

t = 1 month.

I = 100000*0.0066666*1 = $666.67.

P = 733.76 - 666.67 = $67.09 = Amt applied to Po.

Bal. = 100000 - 67.09 = $99,932.91.

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