Answer:
To calculate the interest for each payment, we need to understand how interest is calculated on a loan. Interest is typically calculated based on the outstanding balance of the loan. In this case, the loan amount is $8,000.00, and the interest rate is 12 percent per year.
To find the interest for the first payment, we can use the formula:
Interest = Outstanding Balance * Monthly Interest Rate
The monthly interest rate can be calculated by dividing the annual interest rate by 12 (since there are 12 months in a year). In this case, the monthly interest rate would be:
Monthly Interest Rate = Annual Interest Rate / 12
= 12% / 12
= 1%
Now, let's calculate the interest for the first payment:
Outstanding Balance = Loan Amount - (Number of Payments * Monthly Payment)
= $8,000.00 - (1 * $376.80)
= $7,623.20
Interest = $7,623.20 * 1%
= $76.23
Therefore, the interest for the first payment is $76.23.
To find the interest for the 16th payment, we need to calculate the outstanding balance after 15 payments. Given that the balance after 15 payments is $3,222.44, we can calculate the outstanding balance as follows:
Outstanding Balance = $3,222.44
Now, let's calculate the interest for the 16th payment using the same formula as before:
Interest = Outstanding Balance * Monthly Interest Rate
= $3,222.44 * 1%
= $32.22
Therefore, the interest for the 16th payment is $32.22.
In summary:
- The interest for the first payment is $76.23.
- The interest for the 16th payment is $32.22.
Explanation:
To calculate the interest for each payment, we need to understand how interest is calculated on a loan. Interest is typically calculated based on the outstanding balance of the loan. In this case, the loan amount is $8,000.00, and the interest rate is 12 percent per year.
To find the interest for the first payment, we can use the formula:
Interest = Outstanding Balance * Monthly Interest Rate
The monthly interest rate can be calculated by dividing the annual interest rate by 12 (since there are 12 months in a year). In this case, the monthly interest rate would be:
Monthly Interest Rate = Annual Interest Rate / 12
= 12% / 12
= 1%
Now, let's calculate the interest for the first payment:
Outstanding Balance = Loan Amount - (Number of Payments * Monthly Payment)
= $8,000.00 - (1 * $376.80)
= $7,623.20
Interest = $7,623.20 * 1%
= $76.23
Therefore, the interest for the first payment is $76.23.
To find the interest for the 16th payment, we need to calculate the outstanding balance after 15 payments. Given that the balance after 15 payments is $3,222.44, we can calculate the outstanding balance as follows:
Outstanding Balance = $3,222.44
Now, let's calculate the interest for the 16th payment using the same formula as before:
Interest = Outstanding Balance * Monthly Interest Rate
= $3,222.44 * 1%
= $32.22
Therefore, the interest for the 16th payment is $32.22.
In summary:
- The interest for the first payment is $76.23.
- The interest for the 16th payment is $32.22.