Ask Question
8 August, 06:45

Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and interest). What is the principal balance after Renata has made one payment on her loan? After two payments?'

+2
Answers (1)
  1. 8 August, 09:10
    0
    First payment=$149,950.50

    Second payment=$149,901

    Explanation:

    Annual amount of interest paid=$150,000*7.5%

    =$150,000*0.075

    =$11,250 per annum

    monthly interest = annual interest / 12

    =$11,250/12

    =$937.50

    As given,

    Principal & interest payment=$987

    Monthly principal payment = principal & interest payment - monthly interest

    =$987-$937.50

    =$49.50

    First month payment = original loan - monthly principal payment

    =$150,000-$49.50

    =$149,950.50

    Second month payment = first month payment - monthly principal payment

    =$149,950.50-$49.50

    =$149,901
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and interest). ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers