Answered

IDNLearn.com is your go-to resource for finding answers to any question you have. Get comprehensive and trustworthy answers to all your questions from our knowledgeable community members.

\begin{tabular}{|l|r|}
\hline \multicolumn{2}{|c|}{Installment Loan} \\
\hline Principal & [tex]$\$[/tex] 3,560[tex]$ \\
\hline Term Length & $[/tex]2 \frac{1}{2}[tex]$ years \\
\hline Interest Rate & $[/tex]9\%[tex]$ \\
\hline Monthly Payment & $[/tex]\[tex]$ 133$[/tex] \\
\hline
\end{tabular}

How much of the 16th payment will go to principal if there is an outstanding principal of [tex]$\$[/tex] 1,879[tex]$?

Interest on $[/tex]16^{\text{th}}[tex]$ Payment $[/tex]= \[tex]$ 14.09$[/tex]

Principal on [tex]$16^{\text{th}}$[/tex] Payment [tex]$= \$[/tex] [?]$

Round to the nearest hundredth.

Sagot :

GinnyAnsweridn
To determine how much of the 16th payment will go towards paying down the principal, follow these steps:

1. Identify the given data:
- The monthly payment amount: \[tex]$133 - The interest portion of the 16th payment: \$[/tex]14.09
- Outstanding principal: \[tex]$1,879 2. Calculate the amount of the 16th payment that goes towards the principal: - To find the principal portion, subtract the interest payment from the total monthly payment. \[ \text{Principal payment} = \text{Monthly payment} - \text{Interest payment} \] 3. Substitute the given values: \[ \text{Principal payment} = 133 - 14.09 \] 4. Perform the subtraction: \[ \text{Principal payment} = 118.91 \] Therefore, the portion of the 16th payment that will go towards the principal is \$[/tex]118.91, rounded to the nearest hundredth.
We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.