The second file is for a client named Toomes, who also has a mortgage with the bank. The details you can gather for Toomes' loan are as follows:

• Current loan outstanding: $499,000

Current monthly repayment: $2620

• Next repayment. Due exactly 1 month from now

• Interest rate on loan: 112=4.8%

Using this information, determine the following:

How much interest is Toomes charged for the coming month? Do NOT include a dollar sign in your answer.

Expert Solution

Calculation of the interest charged for the coming month is as follows:

Interest charged for the coming month = Outstanding amount of the current loan * interest rate for one month

Interest charged for the coming month = 499,000 * 4.8% / 12

Interest charged for the coming month = 499,000 * 0.4%

Interest charged for the coming month = 1,996

Hence, the interest charged for the coming month is 1,996.

Nabeel answered 2 years ago

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