monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much…

monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much of the 86th payment will go toward principal if there is an outstanding principal of $119,556?\ninterest on 86th payment = $597.78\nprincipal on 86th payment = $?\nround to the nearest hundredth.

monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much of the 86th payment will go toward principal if there is an outstanding principal of $119,556?\ninterest on 86th payment = $597.78\nprincipal on 86th payment = $?\nround to the nearest hundredth.

Answer

Explanation:

Step1: Recall payment - principal relationship

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

Step2: Solve for principal component

We know the monthly payment is $801 and the interest on the 86th payment is $597.78. Let $P$ be the principal component of the 86th payment. Then $P=801 - 597.78$. $P = 203.22$

Answer:

$203.22$