What have you covered in class? Do you have an annuity/loan repayment formula from your instructor?
The monthly payment on a mortgage is $2,500. If the amount borrowed
is $450,000 and the interest rate is 4% per month, ﬁnd the amounts of the ﬁrst two
payments that go to interest and to principal.
What would be the first step or steps to complete this? I understand I need to find the first two amounts and then compare them with the total interest and principal to get my answer.