Question
In: Finance
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:
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.
Solutions
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.
Hence, the interest charged for the coming month is 1,996.
Nabeel answered 1 year agoRelated Solutions
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