Ali borrows $239,000 to buy a house on March 1. The bank quotes the mortgage rate of 7.75 percent. The loan repayment schedule is asking for the payment to be repaid in equal monthly payments over 20 years. As April 1 happens to be the first payment date, how much of the third payment applies to the principal balance? (Each month is equal to 1/12 of a year.)

Answer rating: 100% (QA)

To determine the amount of the third payment that applies to the principal balance we can follow the... View the full answer