QuESTION 6 , POINT Deshaun and Marsha sign on a \( \$ 195,000 \) mortgage with a \( 4.7 \% \) annual interest rate for 15 years. Their monthly payment is \( \$ 1,511.75 \). How much interest is paid in month one? Round to the nearest cent. By how much is the balance reduced after the first payment? Provide your answer below: The interest in month one is \( \$ \square \). The balance is reduced by \( \$ \square \). Content attribution

To calculate the interest paid in the first month, we use the formula: \[ \text{Interest} = \text{Principal} \times \text{Rate} / 12 \] Substituting the values: \[ \text{Interest} = 195,000 \times 0.047 / 12 \approx 761.25 \] Thus, the interest in month one is \( \$ 761.25 \). To find how much the balance is reduced after the payment, we subtract the interest from the monthly payment: \[ \text{Balance Reduction} = \text{Monthly Payment} - \text{Interest} \] Substituting the values: \[ \text{Balance Reduction} = 1,511.75 - 761.25 = 750.50 \] Therefore, the balance is reduced by \( \$ 750.50 \). The interest in month one is \( \$ 761.25 \). The balance is reduced by \( \$ 750.50 \).