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How much of the first payment applies to the principal

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Reference no: EM133003602

Please answer each of the following questions:

a) How much of the first loan payment interest?

On June 1, you borrowed $220000 to buy a house. The mortgage rate is 8.25 percent. The loan is to be repaid in equal monthly payments over 15 years. The first payment is due on July 1.

b) How much of the first payment applies to the principal balance?

(Assume that each month is equal to 1/12 of a year)

NOTE: Each question needs to write down the formula to calculate

Reference no: EM133003602

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