Question

installment loan principal $3,960 term length 2 years interest rate 15% monthly payment $192 how much of the 14th payment will go to principal if there is an outstanding principal of $1,962? interest on 14th payment = $24.53 principal on 14th payment = $?

Explanation:

Step1: Recall the relationship between monthly payment, interest, and principal

The monthly payment is the sum of the interest portion and the principal portion. So, Principal portion = Monthly Payment - Interest portion.

Step2: Substitute the given values

Monthly Payment = $192, Interest on 14th Payment = $24.53.
So, Principal on 14th Payment = $192 - $24.53.

Step3: Calculate the result

$192 - $24.53 = $167.47.

Answer:

$167.47