Real Estate Finance
posted by tmouery on .
A $100,000, 30 year fixed rate mortgage at 8% interest has monthly principal and interest payments of $733.76. What is the loan balance after the first payment?

1st Month:I = Po*r*t
r = (8%/12) / 100% = 0.0066666 = Monthly
% rate expressed as a decimal.
t = 1 month.
I = 100000*0.0066666*1 = $666.67.
P = 733.76  666.67 = $67.09 = Amt applied to Po.
Bal. = 100000  67.09 = $99,932.91.