Answer:
$170,258.27
Step-by-step explanation:
Principal = $170,650
Interest = 5.5%
Term = 20 years
Monthly payment = $1,173.88
The interest on the first month is simply simple interest of 1 month on the principal.
I = prt = $170,650 * 0.055 * 1/12 = $782.15
Subtract the interest from the first months payment to find the amount of principal paid.
$1,173.88 - $782.15 = $391.73
Since the amount of principal paid on the first month is $391.73, the balance after paying the first month's payment is the original principal reduced by the amount of principal paid in the first month.
balance = $170,650 - $391.73 = $170,258.27
