Bill's monthly payment is $1,056 per month. The principal is $100,000 at a rate of 12 1/2 percent for 35 years. The amount of interest for Bill's 1st payment is $1,011.67.
True
False
False
I = PRT
To determine whether the statement is true or false, we need to calculate the interest for Bill's 1st payment using the given information.
To find the interest, we can use the formula:
Interest = Principal * Rate * Time
Let's calculate the interest for Bill's 1st payment:
Principal = $100,000
Rate = 12.5% = 0.125 (in decimal form)
Time = 35 years (as mentioned in the question)
Interest = $100,000 * 0.125 * (1/12) = $1041.67
The amount of interest for Bill's 1st payment is $1,041.67, not $1,011.67 as stated in the question.
Therefore, the statement "The amount of interest for Bill's 1st payment is $1,011.67" is False.