To determine how much of the 16th payment will go to interest given the outstanding principal of \[tex]$4,112, we can follow these steps:
1. Identify the principal amount outstanding: \$[/tex]4,112.
2. Identify the annual interest rate: 12%.
3. Calculate the monthly interest rate: Since interest rates given in financial contexts are typically annual, we need to divide the annual rate by 12 to convert it to a monthly rate.
[tex]\[
\text{Monthly Interest Rate} = \frac{12\%}{12} = 1\%
\][/tex]
4. Convert the percentage to a decimal: To work with the interest rate in calculations, convert the percentage to a decimal.
[tex]\[
1\% = 0.01
\][/tex]
5. Calculate the interest for the 16th payment: Multiply the outstanding principal by the monthly interest rate.
[tex]\[
\text{Interest on 16th Payment} = \$4,112 \times 0.01
\][/tex]
6. Perform the multiplication:
[tex]\[
\$4,112 \times 0.01 = \$41.12
\][/tex]
Therefore, the amount of the 16th payment that will go to interest is [tex]\( \boxed{\$41.12} \)[/tex].
