The dollar amount for the first month's interest would be $153000 * (5/12) % = $637.50
How to calculate the interest amount?
Sale price =[tex]200000 \times 0.9 = 180000[/tex]
Appraised price is $185000 is higher than
Sale price, so the bank approves the loan
Buyer's loan covers 85% of the sale price
Loan's principal =[tex]180000 \times 0.85 = 153000[/tex]
Annual interest = 5%
Time = 12 months in a year
Monthly interest = [tex]\frac{5}{12}[/tex]%
The dollar amount for the first month's interest would be $153000 * (5/12) % = $637.50
To learn more about interest amount, refer to:
brainly.com/question/11566183
#SPJ4
