Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On August 1 , the home mortgage balance was $ 2 8 3 , 0 0 0 for the home owned by John Ross. The

On August 1, the home mortgage balance was $283,000 for the home owned by John Ross. The interest rate for the loan is 8 percent.
Assuming that John makes the August monthly mortgage payment of $2830, calculate the following:
(a) The amount of interest included in the August payment (round your answer to the nearest cent).
(b) The amount of the monthly mortgage payment that will be used to reduce the principal balance.
(c) The new balance after John makes this monthly mortgage payment.
(a) Interest amount:
(b) Principal reduction:
(c) New balance:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Trade Finance

Authors: Indian Institute Of Banking & Finance

1st Edition

9386394723, 978-9386394729

More Books

Students also viewed these Finance questions