monthly payment principal $133,600 term length 30 years interest rate 6% monthly payment $801 how much of…

monthly payment principal $133,600 term length 30 years interest rate 6% monthly payment $801 how much of the 86th payment will go toward principal if there is an outstanding principal of $119,556? interest on 86th payment = $597.78 principal on 86th payment = $? round to the nearest hundredth.

monthly payment principal $133,600 term length 30 years interest rate 6% monthly payment $801 how much of the 86th payment will go toward principal if there is an outstanding principal of $119,556? interest on 86th payment = $597.78 principal on 86th payment = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Recall payment - principal and interest relationship

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

Step2: Rearrange the formula to find principal

Principal = Monthly Payment - Interest. We know that the monthly payment is $801 and the interest on the 86th payment is $597.78. Principal = $801 - $597.78 Principal = $203.22

Answer:

$203.22