Asked by
Carlo Pedulla
on Dec 09, 2024
Verified
On March 1, you borrow $239,000 to buy a house. The mortgage rate is 7.75%. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on April 1. How much of the third payment applies to the principal balance? (Assume that each month is equal to 1/12 of a year.)
A) $418.53
B) $421.23
C) $423.95
D) $1,540.84
E) $1,543.54
Mortgage Rate
The interest rate charged on a mortgage loan, determining the cost of borrowing for purchasing real estate.
Monthly Payments
Regular payments made each month, often in the context of repaying a loan or lease.
- Understand the implications of interest compounding frequencies on savings and loan scenarios.
Verified Answer
ET
Learning Objectives
- Understand the implications of interest compounding frequencies on savings and loan scenarios.