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 principal if there is an outstanding principal of $596?\ninterest on 31st payment = $5.96\nprincipal 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 principal if there is an outstanding principal of $596?\ninterest on 31st payment = $5.96\nprincipal on 31st payment = $?\nround to the nearest hundredth

Answer

Explanation:

Step1: Recall payment - principal relationship

The monthly payment is composed of interest and principal. The formula is $Monthly\ Payment=Interest + Principal$.

Step2: Solve for principal

We know that the monthly payment is $53$ and the interest on the 31st payment is $5.96$. Let $P$ be the principal part of the 31st payment. Then $P = 53−5.96$. $P=47.04$

Answer:

$47.04$