lars has been approved for$420,000, 20-year mortgage with an APR of 5.125%.What is his monthly payment ? How much interest would he expect to pay on the loan in one month?How much of the monthly payment will go towards the principal?

Answer:Monthly Payment = $2,286.85 Interest on first month payment = $1,793.75Principal value on first month payment =  $493.10Step-by-step explanation:lars has been approved for $420,000 for loan. Time for loan = 20-years APR (Annual Rate of interest ) = 5.125% We need to find monthly payment. First month interest and First month principle. Formula for loan: [tex]p=\dfrac{PV\cdot \frac{r}{n}}{1-(1+\frac{r}{n})^{-nt}}[/tex]Where, p is monthly payment. PV = Loan Amount (PV=$420,000)R = Rate of interest (R=0.05125)t = Loan period ( t=30)n = Mode of payment (n=12)Substitute the value into formula and solve for p [tex]p=\dfrac{420000\cdot \frac{0.05125}{12}}{1-(1+\frac{0.05125}{12})^{-12\cdot 30}}[/tex]p=$2,286.85Thus, Monthly Payment =$2,286.85 Interest for first month [tex]=420000\times \dfrac{0.05125}{12}=1793.75[/tex]Interest pay on the loan in on month = $1,793.75Principle value on first month payment = 2286.85 - 1793.75 = $493.10The monthly payment will go towards the principal is $493.10