Required information

Skip to question

[The following information applies to the questions displayed below.]

On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 down and borrowing the remaining $210,000, signing a 7%, 10-year mortgage. Installment payments of $2,438.28 are due at the end of each month, with the first payment due on January 31, 2021.

rev: 04_05_2019_QC_CS-165219

4. Total payments over the 10 years are $292,594 ($2,438.28 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan?