Your first budget-priced condo that you purchase sells for $30,000. Your loan is for 30 years and is at an interest rate of 8% per year.
a. What will be monthly payment (also commonly called the Principal and Interest, or P&I) be?
$ 190.00 $ 220.21 or $306.10
b. What part of that payment is attributed to interest? (that would be for payment no. 1 only)
$ 125.30 $ 190.15 or $ 200.10
c. What part of that first payment is for retiring the principal?
$ 10.50 $ 12.40 or $ 20.10