Your mortgage is $135,400.00 at a 5.25% apr. if you pay $1,500.00 towards the mortgage each month, how much of your second month's payment is applied to the principal?

Hi there
The interest paid in the first month
135,400×0.0525×(1÷12)=592.38
The payment applied to the principle
1,500−592.38=907.62
Subtract the payment applied from the principle
135,400−907.62=134,492.38
Find the interest paid in the second month
134,492.38×0.0525×(1÷12)=588.40
Finally find the payment applied to the principle in the second month
1,500−588.40
=911.6answer

Hope it helps

What do you mean by that?