Loan Fundamentals

Front

An amortized payment is split into two payments:

Back

Principle and Interest

Front

Sarah has an amortized loan payment of $600, and the interest she owes for that month is $80. By how much does Sarah pay down the principal?

Back

$520

Front

If Trey made a monthly payment of $800 to sag, and $10 of that gets applied to interest, how much of the payment reduces the principle of the loan?

Back

790

Front

John has a monthly mortgage payment of $1200. Of that payment, $400 goes towards interest. How much of John's payment goes towards paying down the principle balance of his mortgage?

Back

$800

Front

Trey makes a monthly payment of $900 for his sagging loan. If $150 of that payment is applied to interest, how much of the payment reduces the principle balance of the loan?

Back

$750