installment loan principal $1,110 term length...

installment loan principal $1,110 term length 2 1/2 years interest rate 12% monthly payment $43 how much of the 26th payment will go to principal if there is an outstanding principal of $209? interest on 26th payment = $2.09 principal on 26th payment = $? round to the nearest hundredth.

Answer

# Answer: $40.91$ # Explanation: ## Step1: Recall payment - principal relationship Monthly payment = Interest + Principal ## Step2: Calculate principal amount Principal = Monthly payment - Interest Given monthly payment = $43$ and interest = $2.09$. Principal = $43 - 2.09=40.91$