posted by on .

I need help:

Emmett has a 15-year \$115,000 mortgage
at 7.1% His monthly payment is \$1,040.09
Find the principal after the first
payment.

I know to multiply 115,000 by 7.1 divided into 12 months, then subtract that answer by \$1,040.09.

When I mulitply 115,000 by 7.1 divided in to 12 I get 68041.666647. Please help because I am confused !!!

One of these is the correct answer:

A.\$ 114,919.58
B.\$ 114,640.33
C.\$ 112,843.39
D.\$ 107,875.09

Remember -- it's not a 12-month mortgage, but a 15-year mortgage. How many months is that?

??

I know its 15 months- but if I use 15 months instead of 12 months I get
13033.33333. And if I say that's
\$13033.33 and subtract it from 115,000

15 years = 180 months

If you keep trying to use the smaller number of months, it'll never work.

http://www.mortgage-calc.com/

=)

the mortgage calculator tells me the payment per month. I know the payment
per month. 1040.09. I need to find the
principal.

The principal is the original amount borrowed: \$115,000.

Of the monthly payment, how much is interest, and how much will be applied to the principal? Once you know that second number, subtract it from \$115,000, and you'll know.

=)

Make sure you use the Amortization calculator, not just the mortgage calculator.
http://www.mortgage-calc.com/

=)

I know how to do that-- what I am having
trouble with is that second number
I have tried 15 years,and I have tried
15 years. I still cannot work this problem. What am I doing wrong?

To find the amount of interest for that first month, I multiplied 115000 by .071 and then divided by 12. Subtract that number from the total monthly payment (1040.09), and then subtract that number from 115000. That'll give you the amount of principle left to be paid.

=)

I thought you said not to divide by 12 years, divide by 15 years or 180 months.
I need help! I have tried and cannot work this problem.

Here is my work.

115000 * .017= 1955.00
1955.00 / 12 = 162.9166667
1955.00 / 15 = 130.3333333

I Don't know if I need to divide by
12, 15, or 180 months.

Then I subtracted the totals from 115000
but did not come up with a correct answer.

Why are you multiplying 115000 by .017? The interest rate is 7.1% (that is, you should multiply by .071).

The monthly payment you have in a post above is correct -- 1040.09.

You need to find out how much of that first payment is interest and how much went toward the principal. So ... 115000 x .071 = 8165 -- then รท 12 = 680.42. That's the amount of the first payment that's going toward INTEREST. So subtract that from 1040.09 and you'll have the amount that's going toward the PRINCIPAL. (You should get 359.67.) Subtract that from the originally borrowed amount and you'll have the answer to the question:
115000 - 359.67 = ??

What do you get?

??