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You have just negotiated a home mortgage with a principal of $500,000. Thebank's quoted rate is 8.5%. You chose a 25-year amortization and you decide
You have just negotiated a home mortgage with a principal of $500,000. Thebank's quoted rate is 8.5%. You chose a 25-year amortization and you decide to make 12 payments per year. Each mortgage payment is $3,976.82. How much interest do you pay in the firstyear? Express your answer as a percentage of the total value of your mortgage payments in the first year.
(Round to four decimal places asneeded.)
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