Question

Charley Bateman obtained a loan of $2,400 to install a solar panel on his roof. The interest rate is 12% and the monthly payment is $113.04. How much of the first monthly payment covered principal?

Answer 1

Interest
2,400×0.01
=24
monthly payment covered principle
113.04−24
=89.04

Hope it helps

Answer 2

`89.04\\` $

Explanation:

The interest rate is on annual basis

Amount collected as interest per month

`= ((12)/(100) * 2400)/12\\= 24\\`

The principal amount in the first monthly payment

`= 113.04 -24\\= 89.04\\`