Respuesta :
Each month, the amount Ben pays toward interest varies (and falls) the amount he pays toward the principal varies (but increases).
Calculations of Interest and Principal Payments
This answer can be explained by using a hypothetical example.
For example, let us assume that the principal outstanding from the first month is $9,500 and the monthly interest rate is 2%. The interest payment, the amount paid toward the principal, and the principal outstanding in the second and third months can be calculated as follows:
For the Second Month, we would have:
Second month interest payment = First month principal outstanding * Interest rate = $9,500 * 2% = $190
Amount paid towards the principal in the second month = Monthly payment - Second month interest payment = $750 - $190 = $560
Second month principal outstanding = First month principal outstanding - Amount paid towards the principal in the second month = $9,500 - $560 = $8,940
For the Third Month, we would have:
Third month interest payment = Second month principal outstanding * Interest rate = $8,940 * 2% = $178.80
Amount paid towards the principal in the third month = Monthly payment - Third month interest payment = $750 - $178.80 = $571.20
Third month principal outstanding = Second month principal outstanding - Amount paid towards the principal in the third month = $8,940 - $571.20 = $8,368.80
From the hypothetical example above, since the second month's interest payment of $190 is different from and greater than the third month's interest payment of $178.80, this implies that the amount Ben pays toward interest varies.
Also, since the amount paid towards the principal in the second month of $560 is different and less than the amount paid towards the principal in the third month of $571.20, this implies that the amount he pays toward the principal also varies.
Learn more on mortgage interest and principal payments here: https://brainly.com/question/1891728.
