monthly payment\nprincipal $133,300\nterm length 30 years\ninterest rate 3%\nmonthly payment $562\nhow much…

monthly payment\nprincipal $133,300\nterm length 30 years\ninterest rate 3%\nmonthly payment $562\nhow much of the 68th payment will go toward interest if there is an outstanding principal of $121,649?\ninterest on 68th payment = $?\nround to the nearest hundredth.

monthly payment\nprincipal $133,300\nterm length 30 years\ninterest rate 3%\nmonthly payment $562\nhow much of the 68th payment will go toward interest if there is an outstanding principal of $121,649?\ninterest on 68th payment = $?\nround to the nearest hundredth.

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is 3% or 0.03. The monthly interest rate $r$ is $\frac{0.03}{12}= 0.0025$.

Step2: Calculate interest portion of payment

The interest portion of the 68th - payment is calculated by multiplying the outstanding principal by the monthly interest rate. Let the outstanding principal $P = 121649$. The interest $I$ is $I=P\times r$. $I = 121649\times0.0025$ $I=304.1225$

Answer:

$304.12$