installment loan\nprincipal $2,680\nterm leng...
installment loan\nprincipal $2,680\nterm length 3 years\ninterest rate 12%\nmonthly payment $89\nhow much of the 19th payment will go to interest if there is an outstanding principal of $1,460?\ninterest on 19th payment = $?
Answer
# Explanation:
## Step1: Convert annual rate to monthly rate
The annual interest rate is 12%, so the monthly interest rate $r=\frac{12\%}{12}= 1\%=0.01$.
## Step2: Calculate interest on 19th payment
The interest portion of a loan - payment is calculated based on the outstanding principal. The formula for the interest portion of a payment is $I = P\times r$, where $P$ is the outstanding principal and $r$ is the monthly interest rate. Given that the outstanding principal $P = 1460$ and $r=0.01$, then $I=1460\times0.01$.
$I = 14.6$
# Answer:
$14.6$