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 = $?

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 = $?

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is 3%, so the monthly interest rate $r=\frac{3%}{12}= 0.0025$.

Step2: Calculate interest portion

The interest portion of a payment is calculated by multiplying the outstanding - principal by the monthly interest rate. Given the outstanding principal $P = 121649$. The interest on the 68th payment $I=P\times r$. $I = 121649\times0.0025$ $I=304.1225\approx304.12$

Answer:

$304.12$