Question

Gertrude took out a 30-year loan for $95,000 at 8.4% interest, compounded monthly. If her monthly payment on the loan is $723.75, how much of her first payment went toward note reduction?

Answer 1

Answer:

  $58.75

Step-by-step explanation:

The monthly interest rate is 8.4%/12 = 0.7%, so the first month's interest is ...

  $95,000×0.007 = $665

The amount of the first payment that goes to note reduction is the part that does not go for paying interest. That difference is ...

  $723.75 - 665.00 = $58.75

Answer 2

Answer:

58.75 is the right APEX ANSWER.