N=3
I%=12.5/4
lond=-40000
repay each time (in your case 3 month)=436
Final amount needs to pay by end of 3 month = 42519.11
so the interest chared is 2519.11 for 3 month
I have a mortgage of $40.000. The term of duration is of 25 years, being applied interest rate of annual 12.5% being accumulated to the balance of debt nonamortized. The value of each quota is of $ 436. With these data they ask to me to calculate the paid amount of the interest during the first three month.
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Threads now merges. CB
The interest rate for monthly repayments is % (there are other ways of computing this depending on exactly what is mean by the annualy interest rate, but this is a common way).
Put
Then after one month the remaing debt is:
after two month:
after three month:
So you have paid off dollars all the rest of the payments were for interest.
CB