monthly payment\nprincipal $103,200\nterm len...
monthly payment\nprincipal $103,200\nterm length 30 years\ninterest rate 5%\nmonthly payment $554\nhow much of the 75th payment will go toward interest if there is an outstanding principal of $92,478?\ninterest on 75th payment = $?
Answer
# Explanation:
## Step1: Convert annual rate to monthly rate
The annual interest rate is 5% or 0.05. The monthly interest rate $r$ is $\frac{0.05}{12}$.
## Step2: Calculate interest for 75th 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. Here, $P = 92478$ and $r=\frac{0.05}{12}$. So, $I=92478\times\frac{0.05}{12}$.
$I = 92478\times\frac{0.05}{12}=\frac{92478\times0.05}{12}=\frac{4623.9}{12}=385.325\approx385.33$
# Answer:
$385.33$