Question

The seller was told by the bank that she has a prepayment penalty due at the time of closing. The penalty is 6 months’ interest on the current loan balance. Based on 6% interest, her monthly payment is $569.57 principal and interest and her loan balance was $95,000 the month before closing. Once she makes her next monthly payment, how much will she owe in prepayment penalty at the time of closing?

Answer 1

Answer:

so the answer is

$944.3043$

Step-by-step explanation:

1. $600 \div 6 = 100$
2. $95000.00 - 569.57 = 94430.43$
3. $94430.43 \div 100 = 944.3043$