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 principal if there is an outstanding principal of $92,478?\ninterest on 75th payment = $385.33\nprincipal on 75th 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 the monthly payment is $554$ and the interest on the 75th payment is $385.33$. So, $Principal = Monthly\ Payment - Interest$.
$Principal=554 - 385.33$
# Answer:
$168.67$