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Celebrate Holidays Company signed a 77​%, 1010minus−year note for $ 170 comma 000$170,000. The company paid an installment of $ 2 comma 500$2,500 for the first month. What portion of the first monthly payment is​ principal? (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Respuesta :

letmeanswer

The first monthly payment is​ $1512

Explanation:

Given,

Company signed a 7​%

$2,500 for the first month

Now,

Interest expense for 1 month = ($170,000 x 7%) x (1/12 ) = $988

Total payment = $2,500

Principal amount ($2,500 - $988) = $1512