Question

Installment

Loan
Principal
Term Length
Interest Rate
Monthly Payment
$35
How much of the 24th payment will go to
principal if there is a remaining principal of
$438.92 before it is made?
$1,150
3 years
6%

Answer 1

The 24th payment will have $8.66 going towards the principal.

Step-by-step explanation:

To find out how much of the 24th payment will go towards the principal, we need to know the remaining principal before the payment is made.

Given that the remaining principal before the 24th payment is $438.92, we can calculate the interest portion of the payment:

Interest = Remaining Principal * Interest Rate

Interest = $438.92 * 0.06 (convert interest rate from percent to decimal)

Interest = $26.34

Now, we can calculate the remaining principal after the 24th payment:

Remaining Principal = Remaining Principal - (Monthly Payment - Interest)

Remaining Principal = $438.92 - ($35 - $26.34)

Remaining Principal = $438.92 - $8.66

Remaining Principal = $430.26

Therefore, the amount of the 24th payment that will go towards the principal is $8.66.