Question

Suppose that you wish to buy a new home that will cost you $400,000. You must put $80,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest?

Answer 1

Particulars	Amount
Loan Amount	$         3,20,000.00
Int Rate per month	0.4000%
No. of Months	360
EMI = Loan Amount / PVAF (r%, n)
Where r is Int rate per month & n is no. of months
= $ 320000 / PVAF (0.004 , 360)
= $ 320000 / 190.5977
= $ 1678.93

EMI Amortization
Period	Opening Bal	EMI	Int	Principal Repay	Closing Outstanding
1	$         3,20,000.00	$         1,678.93	$            1,280.00	$                398.93	$            3,19,601.07
2	$         3,19,601.07	$         1,678.93	$            1,278.40	$                400.52	$            3,19,200.55

Interest paid for the second month is $ 1278.40

Pls do rate, if the answer is correct and comment, if any further assistance is required.