Question

Plan B of a monthly payment of 336 for 6 years (72 months) at 4.5 %. What is the total amount paid to the principal in the first month's payment?

Select the correct answer below:

A. $256.63
B. $261.92
C. this value can’t be determined
D. $79.37

Answer 1

Answer:

The answer is "A" $256.63

Step-by-step explanation:

336 = (.045/12)(pv)/(1-(1+.045/12)^-72)

PV =  $21,166.65  

(.045*$21,166.65)/12 = $79.37

$336 - $79.37 = $256.63