Cora Scott has a personal loan of $1,500. The monthly payment is $78.45. The interest rate is 23%. How much of the first monthly payment is for interest?
Group of answer choices
$18.04
$49.70
$28.75
To calculate the amount of the first monthly payment that is for interest, you can use the formula:
Interest = Principal (loan amount) x Interest Rate
In this case, the loan amount is $1,500 and the interest rate is 23%.
Interest = $1,500 x 0.23 = $345
However, we need to find the interest for just the first monthly payment. The monthly payment is $78.45.
So, the amount of the first monthly payment that is for interest is $78.45.
Therefore, the answer is $78.45.