monthly payment principal $164,300 term length 30 years interest rate 5% monthly payment $882 how much of…

monthly payment principal $164,300 term length 30 years interest rate 5% monthly payment $882 how much of the 267th payment will go toward interest if there is an outstanding principal of $68,482? interest on 267th payment = $? round to the nearest hundredth.

monthly payment principal $164,300 term length 30 years interest rate 5% monthly payment $882 how much of the 267th payment will go toward interest if there is an outstanding principal of $68,482? interest on 267th payment = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is 5% or 0.05. The monthly interest rate $r$ is $\frac{0.05}{12}$.

Step2: Calculate interest for 267th payment

The interest portion of a loan - payment is calculated based on the outstanding principal. Let the outstanding principal $P = 68482$. The interest $I$ for the 267th payment is $I=P\times r$. $I = 68482\times\frac{0.05}{12}$ $I=\frac{68482\times0.05}{12}=\frac{3424.1}{12}\approx285.34$

Answer:

$285.34$