Use an Amortization Table to Solve the Problem

question 97

Short Answer

Use an amortization table to solve the problem. Round to the nearest cent.
-A $90,000 home was financed by making a 20% down payment and signing a 30-year mortgage at 6.25%
annual interest compounded monthly for the unpaid balance. The first payment is $443.32. How much of the
first month's payment will apply towards reducing the principal?

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Definitions:

Prefrontal Cortex

The part of the frontal lobes of the brain involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Amygdala

A part of the brain involved in experiencing emotions, particularly fear and pleasure.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.

Hostility

Aggressive behavior or attitudes towards others, often stemming from anger or resentment.