installment loan\nprincipal $5,390\nterm length 3 years\ninterest rate 15%\nmonthly payment $187\nhow much…

installment loan\nprincipal $5,390\nterm length 3 years\ninterest rate 15%\nmonthly payment $187\nhow much of the 20th payment will go to interest if there is an outstanding principal of $2,842?\ninterest on 20th payment = $?

installment loan\nprincipal $5,390\nterm length 3 years\ninterest rate 15%\nmonthly payment $187\nhow much of the 20th payment will go to interest if there is an outstanding principal of $2,842?\ninterest on 20th payment = $?

Answer

Explanation:

Step 1: Calculate monthly interest rate

Convert annual interest rate to monthly rate.
$\frac{15%}{12} = 1.25% = 0.0125$

Step 2: Compute interest portion of 20th payment

Multiply outstanding principal by monthly interest rate.
$2842 \times 0.0125$

Answer:

35.525