Question

6) You just took out $200,000 mortgage. You must make equal monthly payments over 30 years, and your interest rate is 6% APR. what is your monthly payment? How much of the first month's payment is paying interest and how much is paying down the principle balance remaining on the loan. 1) Your monthly payment is $1,245.08. $1,000 of your first month's payment goes toward interest, and $245.08 goes toward paying down the principle balance remaining. 2) Your monthly payment is $1,199.10. $1,000 of your first month's payment goes toward interest, and $199.10 goes toward paying down the principle balance remaining 3) Your monthly payment is $1,245.08. $500 of your first month's payment goes toward interest, and $745.08 goes toward paying down the principal balance remaining 4) Your monthly payment of $1,199.10. $500 of your first month's payment goes toward interest, and S699.10 goes down the principal balance remaining.

Please show all work and explain

Answer 1

Answer : Monthly payment will be $1199.10

So, Option number 2 is the right one your monthly payment is $1199,10. $1000 of your first month's payment goes toward interest, and $1199.90 goes towards payment down the principal balance remaining.