Question
Jeff recently purchased a house for $350,000. He made a down payment of $50,000 and financed the balance over 30 years at 8%. If Jeff
Jeff recently purchased a house for $350,000. He made a down payment of $50,000 and financed the balance over 30 years at 8%. If Jeff 's first payment is due on March 1st of the current year, how much interest expense will Jeff pay in the current year?
I am struggling with finding the right functions on the BA II Plus. I can enter 300,000 as my PV and 0.75 as my I/Y and 360 as my N, to calculate the payment. I change my payment to BGN
So I can determine that my payment is 2395.90 But I have no idea how much of that is interest and how much is principle. My guess would be to take 0.75*300,000 to arrive at interest of 2,250.00 with the remaining 145.90 in month 1 applied to prinicple. I am just stuck as to what to do in Year 2, and whether there is an easier way to go about this.
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