Asked Jan 10, 2020

You have just purchased a home and taken out a $500,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 6%.

How much will you pay in interest, and how much will you pay in principal, during the first year?


Expert Answer

Step 1

Calculation of Total Interest Paid and Total Principal Paid:

The total interest paid is $29,832.97 and total principal paid is $6,140.06.

Excel Spreadsheet:

Finance homework question answer, step 1, image 1

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