Question
On August 1, the home mortgage balance was$289,000 for the home owned by Kevin Kelly. The interest rate for the loan is8.4 percent. Assuming that
On August 1, the home mortgage balance was$289,000 for the home owned by Kevin Kelly. The interest rate for the loan is8.4 percent. Assuming that Kevin makes the August monthly mortgage payment of$2890, 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 Kevin makes this monthly mortgage payment.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
