MATH SOLVE

4 months ago

Q:
# The Williams family has a $234,900 mortgage at 9%. Their monthly payment is $1890. What is the new principal after the first payment to the nearest hundredth of a dollar?

Accepted Solution

A:

Answer:$234 771.75Step-by-step explanation:Data:
Principal = $234 900
APR = 9 % = 0.09
Payment = $1890
Calculations:
1. Monthly interest rate
r = 0.09/12 = 0.0075
2. Interest for first month
Interest = 234 900 × 0.0075 = $1761.75
3. New Principal
Principal = $234 900.00
+ Interest = + 1761.75
End of month = 236 661.75
- Payment = - 1890.00
New principal = $234 771.75
The new principal is $234 771.75