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Mortgage Amortization: Standard Mortgage Rates

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Consider a standard mortgage (360 months) with monthly payments and a nominal rate (monthly compounding) of 5.70%. What portion of the payments during the first 31 months goes toward interest?

79.39%
80.48%
82.86%
84.08%
85.83%

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Solution Summary

Solution depicts the steps to calculate the interest portion of first 31 payments in the given case.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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