On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.25 percent. The loan is to be repaid in equal monthly payments over 15 years. All taxes and insurance premiums are to be paid separately. The first payment is due on July 1. How much of the first payment applies to the principal balance

Amount of the payment to be applied to the principal is $714.43

Explanation:

When a loan is to be paid over a period of time using a series of periodic equal installments, it is called loan amortization. Each equal installment is meant to liquidate the principal and the accrued interest.

The monthly equal installment is calculated as follows:

Monthly equal installment-= Loan amount/Monthly annuity factor

Monthly annuity factor

=( 1-(1+r)^(-n))/r

Monthly interest rate (r)

= 5.25/12= 0.4375%,

Number of months

= 15* 12 =180

Annuity factor

= ( 1- (1.004375)^(15×12)0/0.004375

=124.39

Monthly installment

= 195,000/124.39

=1567.561

Interest due in first month

= 0.4375% × 195,000

= 853.125

Amount of the payment to be applied to the principal

= 1,567.561 -853.125

=$714.43

2,283,000

explanation:

i just had to add it

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know