Question

Determine the monthly interest on a loan with a balance of $168,300, a monthly payment of $1,356.80, and an interest rate of 7.75%?

Answer 1

Answer:

$1,086.94

Explanation:

The loan has a balance of $168,300

The monthly payment is $1,356.80

The interest rate is 7.75%

= 7.75/100

= 0.0775

Therefore the monthly interest rate on the loan can be calculated as follows

= $168,300 × 0.0775

= $13,043.25

Since there are 12 months in a year then,

= $13,043.25/12

= $1,086.94

Hence the monthly interest is $1,086.94