Respuesta :
Answer:
$66.97 is his first payment went toward reduction.
Step-by-step explanation:
Given : Jesse took out a 30-year loan for $85,000 at 7.2% interest, compounded monthly. If his monthly payment on the loan is $576.97.
To find : How much of his first payment went toward note reduction(reducing principal)?
Solution :
First we find the interest of 1 month on a loan of $85,000 at 7.2% interest.
[tex]I=85000\times \frac{7.2}{12\times 100}[/tex]
[tex]I=85000\times 0.006[/tex]
[tex]I=510[/tex]
Interest of 1 month is $510.
Monthly payment = $576.97
Now, first payment or reducing principal is given by
F= monthly payment - interest of 1 month
F=$576.97- $510
F=$66.97
Therefore, $66.97 is his first payment went toward reduction.