Solve for the amount of monthly interest that is owed on an interest-only loan based on the following facts: loan amount $115,000, annual interest rate of 7%? 767? 671? 575? 7,475?

The annual interest owed is

... 7% × $115,000 ≈ $8050

The monthly interest owed is 1/12 that amount.

... (1/12) × $8050 ≈ $671

Some calculators are able to use 7% as a factor; others require you use the decimal equivalent, 0.07.

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