Problem:
You just acquired a mortgage in the amount of $249,500 at 5.8 percent interest, compounded monthly. Equal payments are to be made at the end of each month for thirty years.
Required:
Question: How much of the first loan payment is interest? (Assume each month is equal to 1/12 of a year.)
- $925.20
- $1,205.83
- $1,403.44
- $1,511.21
- $1,969.15
Note: Please show the work not just the answer.