Question

Anyone wanna help me? I'm having trouble finding the first payment :/

Jill Barkely obtained a 25-year, $460,000 mortgage loan from University Savings and Loan Association with 6% interest. The monthly payment is $2,962.40. For the first payment, find the interest to the nearest cent.

Answer 1

Have you considered calculating it directly? $2,962.40*(0.06/12)

Answer 2

which is 14.81 correct?

Answer 3

yep

Answer 4

I tried that but it was wrong

Answer 5

Did you try $14.82? There are some rounding issues.

For one, $2,962.40 gets only to $459,784.81, a little short of the suggested amount.

Answer 6

Yes it is still incorrect :/ I also tried this too but I'm not sure if I calculated correctly. Originally I had gotten $7.60

Answer 7

It doesn't matter how you calculate it. The answer is unique.

Answer 8

\(2962.40\cdot\dfrac{1-\left(1+\dfrac{0.06}{12}\right)^{-300}}{\dfrac{0.06}{12}} = 459784.81\)

\(2962.40\cdot\dfrac{1-\left(1+\dfrac{0.06}{12}\right)^{-300}}{\dfrac{0.06}{12}} = 459121.34\)

\(459784.81-459121.34 = 663.47\)

\(2962.40 - 663.47 = 2298.93\)

This suggests that I start this conversation over!!

Have you considered calculating it directly? $460,000*(0.06/12) = $2,300.00 -- So much better!

Sorry about the false start.

Answer 9

Yes! I got 2,300 but then i didn't know what to do from there. $2,300 is the total interest correct? well I thought that if I took that and divided by 300 it would be right but it's not

Answer 10

I got 300 by multiplying 25 and 12 since there is a 25 year period and there are 12 months.... @tkhunny

Answer 11

(in a year)

Answer 12

All you need is this: $460,000*(0.06/12) = $2,300.00 - Calculate the interest directly.

Answer 13

So you're saying that the answer would be 2,300? Cause I tried that too.. :l

Answer 14

The WAY LONGER way was only $1.07 different.
Let's go with it calculated directly at $2,300.00.