Duckiesaur8breadidn
Answered

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\begin{tabular}{|l|r|}
\hline
\multicolumn{2}{|c|}{ Installment Loan } \\
\hline
Principal & \[tex]$1,260 \\
\hline
Term Length & 4 years \\
\hline
Interest Rate & 15\% \\
\hline
Monthly Payment & \$[/tex]35 \\
\hline
\end{tabular}

How much of the 20th payment will go to the principal if there is an outstanding principal of \[tex]$850?

Interest on the 20th Payment = \$[/tex]10.63

Principal on the 20th Payment = \$[?]

Round to the nearest hundredth.

Sagot :

GinnyAnsweridn
Let's solve the problem step-by-step to determine how much of the 20th payment will go toward the principal.

1. Identify Given Information:
- Monthly Payment: \[tex]$35 - Interest on 20th Payment: \$[/tex]10.63

2. Determine the Amount of the 20th Payment Applied to Interest:
- Given that the interest portion of the 20th payment is \[tex]$10.63. 3. Calculate the Principal Portion of the 20th Payment: - The principal portion of any installment payment is the total monthly payment minus the interest portion. - Principal on 20th Payment = Monthly Payment - Interest on 20th Payment - Principal on 20th Payment = \$[/tex]35.00 - \[tex]$10.63 4. Perform the Calculation: - Subtract the interest amount from the total monthly payment: \[ 35.00 - 10.63 = 24.37 \] 5. Rounding: - As required, round the result to the nearest hundredth (which is already done). So, the principal portion of the 20th payment is \$[/tex]24.37.

Thus, the principal payment on the 20th payment is [tex]\(\boxed{24.37}\)[/tex].
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