You have just applied, and have been approved for a $58,000 mortgage. the rate quoted to you by the lender is 6.1% for a 30 year fixed mortgage. determine how much of your third monthís payment goes towards the principal.
a.
$56.65
c.
$57.22
b.
$56.93

Here, PV = 58,000, monthly rate = 0.061/12 = 61/12000, n = 30 x 12 = 360 months.
PV = P(1 - (1 + r)^-n)/r; where P is the periodic payment.
P = PV(r)/(1 - (1 + r)^-n) = (58000 x 61/12000)/(1 - (1 + 61/12000)^-360) = (1769/6)/(1 - 0.1612) = 294.8/0.8388 = 351.48
Therefore, the monthly payment is $351.48

For the first month. Interest due = 58000(61/12000) = $294.83
Amount that goes towards the principal = $351.48 - $294.83 = $56.65
Outstanding principal = $58000 - $56.65 = $57,943.35

For the second month. Interest due = $57,943.35(61/12000) = $294.55
Amount that goes towards the principal = $351.48 - $294.55 = $56.93
Outstanding principal = $57,943.35 - $56.93 = $57,886.42

For the third month. Interest due = $57,886.42(61/12,000) = $294.26
Amount that goes towards the principal = $351.48 - $294.26 = $57.22

Therefore, the required amount is $57.22