Final answer:
The calculation of the interest component for the 206th payment requires the loan term and involves applying the monthly interest rate to the remaining balance after 205 payments, which is not possible with the provided information.
Step-by-step explanation:
To calculate the interest component of the 206th payment on a loan with a principal of $106,000, an interest rate of 7.9% compounded semiannually, and monthly payments of $780, we would typically use an amortization formula. However, without the loan term, it's not possible to provide a direct answer or calculate the interest for the 206th payment. The solution would normally involve finding the remaining balance after 205 payments and applying the monthly interest rate to it.For calculating the interest component of payment 206, we need to first find the principal amount remaining after 205 payments.
Since the monthly payments are $780, the remaining principal after 205 payments will be $780 multiplied by the number of payments left, which is 206. Next, we calculate the interest component of payment 206 by subtracting the principal amount remaining from the total payment amount, which is $780.To provide an accurate calculation, additional information such as the total number of payments (loan term) would be necessary. The amortization calculation would also require converting the semiannual interest rate to a monthly rate and considering the effects of compounding.