installment loan\nprincipal $2,240\nterm length 2 ½ years\ninterest rate 15%\nmonthly payment $90\nhow much…

installment loan\nprincipal $2,240\nterm length 2 ½ years\ninterest rate 15%\nmonthly payment $90\nhow much of the 11th payment will go to principal if there is an outstanding principal of $1,584?\ninterest on 11th payment = $19.80\nprincipal on 11th payment = $?

installment loan\nprincipal $2,240\nterm length 2 ½ years\ninterest rate 15%\nmonthly payment $90\nhow much of the 11th payment will go to principal if there is an outstanding principal of $1,584?\ninterest on 11th payment = $19.80\nprincipal on 11th payment = $?

Answer

Explanation:

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

The principal portion of a monthly payment is calculated as the monthly payment minus the interest portion of that payment. Mathematically, this can be expressed as:
Principal Payment = Monthly Payment - Interest Payment

Step2: Substitute the given values.

We know that the monthly payment is $90 and the interest on the 11th payment is $19.80. Substituting these values into the formula:
Principal Payment = $90 - $19.80

Step3: Perform the subtraction.

$90 - $19.80 = $70.20

Answer:

$70.20