Respuesta :
Answer:
The first payment went toward reduction is $129.05.
Step-by-step explanation:
Consider the provided information.
Harry took out a 25-year loan for $160,000 at 9.6% interest, compounded monthly. His monthly payment on the loan is $1409.05,
Now, find the interest of 1 month on a loan of $160,000 at 9.6% interest.
[tex]I=160000 \times \frac{9.6}{12 \times 100}[/tex]
[tex]I=160000 \times (0.008)[/tex]
[tex]I=1280[/tex]
Thus, the Interest of 1 month is $1280.
Monthly payment is $1409.05
First payment or reducing principal is given by:
F = monthly payment - interest of 1 month
F = $1409.05 - $1280
F = $129.05
Therefore, The first payment went toward reduction is $129.05.
