Tom Burke buys a home in Virginia for 139000 He puts down 30

Tom Burke buys a home in Virginia for $139,000. He puts down 30% and obtains a mortgage for 25 years at 12%. The portion of the first payment that covers interest is:

Solution

Tom Burke buys a home in Virginia for $139,000. He puts down 30% : 41700

                                               remaing is 139000-41700=97300

                               mortgage for 25 years at 12%. =12% for 97300 =11676

                                          total:97300+11676=108976

                                                                      108976/25=4359.04 per month

   The portion of the first payment that covers interest is: (11676/4359.04)=2.6785% of interest