Results 1 to 2 of 2

Math Help - Interest Rate Problem

  1. #1
    Newbie
    Joined
    Feb 2013
    From
    MI
    Posts
    7

    Interest Rate Problem

    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.
    Last edited by Launcher; February 6th 2013 at 04:44 PM.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Sep 2012
    From
    Australia
    Posts
    4,165
    Thanks
    762

    Re: Interest Rate Problem

    Hey Launcher.

    What have you covered in class? Do you have an annuity/loan repayment formula from your instructor?
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Interest rate swap problem
    Posted in the Business Math Forum
    Replies: 1
    Last Post: June 7th 2012, 02:18 AM
  2. interest rate problem
    Posted in the Algebra Forum
    Replies: 2
    Last Post: April 7th 2011, 08:44 AM
  3. Interest Rate Problem
    Posted in the Calculus Forum
    Replies: 0
    Last Post: November 2nd 2009, 12:58 PM
  4. interest rate problem
    Posted in the Business Math Forum
    Replies: 1
    Last Post: December 7th 2008, 10:42 PM
  5. Interest Rate problem help!!!!
    Posted in the Math Topics Forum
    Replies: 1
    Last Post: November 23rd 2008, 09:35 PM

Search Tags


/mathhelpforum @mathhelpforum