(a) The amount of interest included in the February payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kevin makes this monthly mortgage payment.

(a) The amount of interest included in the February payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kevin makes this monthly mortgage payment.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 24PROB

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Question

Español
On February 1, the home mortgage balance was $80,000 for the home owned by
Kevin Perez. The interest rate for the loan is 9 percent.
Assuming that Kevin makes the February monthly mortgage payment of $800,
calculate the following:
(a) The amount of interest included in the February
payment (round your answer to the nearest cent).
(b) The amount of the monthly mortgage payment that
will be used to reduce the principal balance.
(c) The new balance after Kevin makes this monthly
mortgage payment.
(a) Interest amount:
(b) Principal reduction:
(c) New balance:
20
▷
4
Aa

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