installment loan\nprincipal $2,680\nterm length 3 years\ninterest rate 12%\nmonthly payment $89\nhow much of…

installment loan\nprincipal $2,680\nterm length 3 years\ninterest rate 12%\nmonthly payment $89\nhow much of the 19th payment will go to interest if there is an outstanding principal of $1,460?\ninterest on 19th payment = $?

installment loan\nprincipal $2,680\nterm length 3 years\ninterest rate 12%\nmonthly payment $89\nhow much of the 19th payment will go to interest if there is an outstanding principal of $1,460?\ninterest on 19th payment = $?

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is 12%, so the monthly interest rate $r=\frac{12%}{12}= 1%=0.01$.

Step2: Calculate interest on 19th payment

The interest portion of a loan - payment is calculated based on the outstanding principal. The formula for the interest portion of a payment is $I = P\times r$, where $P$ is the outstanding principal and $r$ is the monthly interest rate. Given that the outstanding principal $P = 1460$ and $r=0.01$, then $I=1460\times0.01$. $I = 14.6$

Answer:

$14.6$