Question

Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and interest). What is the principal balance after Renata has made one payment on her loan? After two payments?

Answer 1

Answer:

Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month.

I have solved this using excel sheet that is attached here.

p = $150000

r = 7.5%

t = $30\times12=360$

EMI = $987

You can see the excel sheet, after first month principle is $ 149,950.50  and after second month it is $149,900.69 .