Question

Vincent Pancozzi borrowed $750 on a one-year simple interest loan at 17% interest. The monthly payments were $63.57. Find the amount of interest, amount applied to the principal, and the new balance for the first monthly payment.

Answer 1

Amount of interest = 127.5

Amount applied to main = 877.5

New balance for the first monthly payment = 813.93

Explanation:

Since Vincent Pancozzi borrowed $ 750 on a one-year simple interest loan at 17% interest and the monthly payments were $ 63.57, to find the amount of interest, amount applied to the principal, and the new balance for the first monthly payment the following calculations must be made:

Amount of interest: 750 x 0.17 = 127.5

Amount applied to main: 750 + 127.5 = 877.5

New balance for the first monthly payment: 877.5 - 63.57 = 813.93