Lynn Jones is financing $69,700 for a home at 7% interest with a 17-ye

QUESTION

Lynn Jones is financing $69,700 for a home at 7% interest with a 17-year fixed-rate loan.Find the interest paid and principal paid for each of the first two months of the loan and find the principal owed at the end of he second month.interest paid the 1st month = $interest paid the 2nd month = $prin
Payment per month is .07/12* 69,700/((1- (1 .07/12)^(-17*12)= 585.24 So interest due the first month is (69,700*.07/12)= 406.58 and principal paid is (585.24-406.58)= 178.66. The principal is now 69,700 -178,66= 69,521.34 so the interest paid in the

econd month is that amount times .07/12= 405.54 and principal paid is 585.24-405.54= 179.70. Principal owed at the end of the second month is 69521.34-179.70=69,341.64.

ANSWER:

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