Final answer:
The principal part of a monthly loan payment is the amount of money that goes towards paying off the original loan amount.
Step-by-step explanation:
The principal part of a monthly loan payment is the amount of money that goes towards paying off the original loan amount. To calculate the principal part of the 22nd monthly loan payment for a home mortgage loan of $175,000 at 6% interest for 30 years, we need to determine the monthly payment amount first. This can be calculated using the formula:
P = (r * PV) / (1 - (1+r)^(-n))
Where:
- P is the monthly payment
- r is the monthly interest rate (6% divided by 12)
- PV is the loan amount
- n is the total number of payments (30 years multiplied by 12)
Using this formula, we can calculate the monthly payment amount and then determine the principal part of the 22nd monthly payment.