installment loan principal $2,680 term length...

installment loan principal $2,680 term length 3 years interest rate 12% monthly payment $89 how much of the 19th payment will go to principal if there is an outstanding principal of $1,460? interest on 19th payment = $14.60 principal on 19th payment = $? round to the nearest hundredth.

Answer

# Explanation: ## Step1: Recall payment - principal relationship The monthly payment is composed of interest and principal. The formula is Monthly Payment = Interest + Principal. ## Step2: Solve for principal We know the monthly payment is $89 and the interest on the 19th payment is $14.60. Let $P$ be the principal part of the 19th payment. Then $P=89 - 14.60$. $P = 74.40$ # Answer: $74.40$