Answer:
$618.75
Explanation:
It is important to remember that amortized payments include an interest portion and a capital repayment portion towards the principle. In the early payments the interests amounts are usually larger than the portion of the capital repayments. This changes as the years progress towards maturity of the loan
Thus said, interest portion of the payment be on a payment made August 1 can be calculated as follows :
Annual Interest = $165,000 × 4.5% × 360/360
= $7,425
From July 1 to August 1 we have a period of 30 days
Therefore,
Interest accrued = $7,425 × 30/360
= $618.75
Conclusion :
The interest portion of the payment on August 1 is $618.75
