Duckiesaur8breadidn
Answered

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\begin{tabular}{|l|r|}
\hline \multicolumn{2}{|c|}{Installment Loan} \\
\hline Principal & [tex]$\$[/tex]1,810[tex]$ \\
\hline Term Length & $[/tex]3 \frac{1}{2}[tex]$ years \\
\hline Interest Rate & $[/tex]12\%[tex]$ \\
\hline Monthly Payment & $[/tex]\[tex]$53$[/tex] \\
\hline
\end{tabular}

How much of the 31st payment will go to principal if there is an outstanding principal of [tex]$\$[/tex]596[tex]$?

Interest on the 31st Payment = $[/tex]\[tex]$5.96$[/tex]

Principal on the 31st Payment = [tex]$\$[/tex][?]$

Round to the nearest hundredth.

Sagot :

GinnyAnsweridn
To determine how much of the 31st payment will go towards the principal, follow these steps:

1. Identify the total monthly payment: The problem states that the monthly payment is \[tex]$53. 2. Determine the interest portion of the 31st payment: According to the information given, the interest for the 31st payment is \$[/tex]5.96.

3. Calculate the principal portion of the 31st payment: The principal portion can be found by subtracting the interest portion from the total monthly payment:

[tex]\[ \text{Principal on 31st Payment} = \text{Monthly Payment} - \text{Interest on 31st Payment} \][/tex]

Substituting the given values:

[tex]\[ \text{Principal on 31st Payment} = \$53 - \$5.96 \][/tex]

Simplify the subtraction:

[tex]\[ \text{Principal on 31st Payment} = 53 - 5.96 = 47.04 \][/tex]

4. Round to the nearest hundredth: The calculation already results in a value rounded to the nearest hundredth, which is \[tex]$47.04. Therefore, the amount of the 31st payment that will go towards the principal is \(\$[/tex]47.04\).
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