installment loan\nprincipal $1,810\nterm leng...
installment loan\nprincipal $1,810\nterm length 3 1/2 years\ninterest rate 12%\nmonthly payment $53\nhow much of the 31st payment will go to principal if there is an outstanding principal of $596?\ninterest on 31st payment = $5.96\nprincipal on 31st payment = $?\nround 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 that the monthly payment is $53$ and the interest on the 31st payment is $5.96$. Let $P$ be the principal part of the 31st payment. Then $P = 53−5.96$.
$P=47.04$
# Answer:
$47.04$