Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![**Problem Statement:**
Marcel Thiessen purchased a home for **$206,900** and obtained a 15-year, fixed-rate mortgage at **9%** after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.)
- Interest: \$\[ \_\_\_\_\_\_ \]
- Applied to the principal: \$\[ \_\_\_\_\_\_ \]
**Instructions:**
Enter your answers in the spaces provided.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c031345-8d8f-42b0-92b0-478b177b1254%2F9abe96d8-9a24-4e9a-a7ad-b7c48cdae625%2F2y8guuo_processed.png&w=3840&q=75)
Transcribed Image Text:**Problem Statement:**
Marcel Thiessen purchased a home for **$206,900** and obtained a 15-year, fixed-rate mortgage at **9%** after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.)
- Interest: \$\[ \_\_\_\_\_\_ \]
- Applied to the principal: \$\[ \_\_\_\_\_\_ \]
**Instructions:**
Enter your answers in the spaces provided.
Expert Solution

Step 1
We have,
Price/Investment = $2,06,900
Mortgage Interest = 9%
Down payment Interest = 10%
Time = 15 years
We need to calculate,
Interest and applied to the principal
Step by step
Solved in 2 steps

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