installment loan\nprincipal $1,810\nterm length 3 1/2 years\ninterest rate 12%\nmonthly payment $53\nhow…

installment loan\nprincipal $1,810\nterm length 3 1/2 years\ninterest rate 12%\nmonthly payment $53\nhow much of the 31st payment will go to interest if there is an outstanding principal of $596?\ninterest on 31st payment = $?\nround to the nearest hundredth.

installment loan\nprincipal $1,810\nterm length 3 1/2 years\ninterest rate 12%\nmonthly payment $53\nhow much of the 31st payment will go to interest if there is an outstanding principal of $596?\ninterest on 31st payment = $?\nround to the nearest hundredth.

Answer

Explanation:

Step1: Convert annual interest rate to monthly

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

Step2: Calculate interest for 31st payment

The interest is calculated based on the outstanding - principal. The formula for the interest portion of a loan payment is $I = P\times r$, where $P$ is the outstanding principal and $r$ is the monthly interest rate. Given $P = 596$ and $r=0.01$, then $I=596\times0.01$. $I = 5.96$

Answer:

$5.96$