what is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P&I payment of $3,780?

Answers

Answer 1

Answer: $779,500

Explanation:

The  Principal and Interest payment (P&L) as the name implies, include both the interest and the principal.

The interest is calculated based on the loan balance(loan still owed) and the rest will go towards settling the loan.

Interest = 5%/ 12 months * 780,000

= $3,250

Principal = 3,750 - 3,250

= $500

Balance on loan:

= 780,000 - 500

= $779,500

Answer 2

The balance on an amortized loan of $780,000 is $779,470.

Balance on amortized loan

First step

Interest = 5%/ 12 months × $780,000

Interest= $3,250

Second step

Principal =$3,780 - $3,250

Principal= $530

Third step

Balance on loan amortized= 780,000 - $530

Balance on loan amortized=$779,470

Inconclusion the balance on an amortized loan of $780,000 is $779,470.

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Answers

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True
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