Derek Wayne has obtained a 30-year, fixed-rate home loan of $ 100,000 with an annual interest rate of 7.5 percent. Because the loan extends for such a lengthy period, the mortgage(抵押) company calculates a monthly payment that ensures it will get most of its interest back first. Thus in the beginning months, Wayne's principal payment—the amount he pays toward his actual loan—increases extremely slowly.
| Payment Number | Total Monthly | Principal Portion of Payment | Interest Portion of Payment | Current Balance |
| 1 | $699.21 | $ 74.21 | $ 625.00 | $99,925.79 |
| 2 | $699.21 | $74.68 | $624.54 | $99,854.11 |
| 359 | $699.21 | $690.56 | $8.66 | $694.87 |
| 360 | $699.21 | $694.87 | $4.34 | $0.00 |
Let's analyze Wayne's early payments. Imagine that on December 15 the Mauritanian Mortgage Corporation gives Wayne $100,000, and on January 15 his initial payment is due. Throughout this first month, interest accumulates on the entire $ 100,000. On a yearly interest rate of 7.5%, Wayne's monthly rate is 0.625% or 7.5%divided by 12. Multiplying $100,000 by 0.625% yields $625, the portion of Wayne's first monthly payment that is interest. So Wayne now owes $ 99,925.79 ( $100,625－$699.21). His February interest payment will be 0.625% of $ 99,925.79.
By the time Wayne makes his last few payments, his monthly interest payment has decreased considerably. His balance following his 359th payment is $ 694.87, and 0.625% of that is about $ 4.34, his final interest payment. What was the total amount of interest Wayne paid? Multiplying 360 months by $699.21 equals $ 251,715.60, and subtracting $100,000(the loan amount) leaves $151,715.60—over 1.5 times what he actually borrowed!
46. This passage is mainly concerned with ______.
A. Derek Wayne
B. the Mauritanian Mortgage Corporation
C. how interest payments on a loan change
D. calculating the number of payments Wayne made
47. The monthly interest rate on Wayne's loan was ______.
A. 7.5% B. 6.5% C. 0.625% D. $625
48. We can conclude that Wayne's total monthly payment was always ______.
A. $699.21 B. $100,000 C. $360 D. $151,715.60
49. The table in the passage helps the readers see ______.
A. Wayne's down payment before he took out the loan
B. Wayne's first and last payments
C. how much his interest payments increased
D. at what point the interest and principal payments were just about equal.