monthly payment\nprincipal $122,200\nterm length 30 years\ninterest rate 7%\nmonthly payment $813\nhow much…

monthly payment\nprincipal $122,200\nterm length 30 years\ninterest rate 7%\nmonthly payment $813\nhow much of the 333rd payment will go toward interest if there is an outstanding principal of $20,946?\ninterest on 333rd payment = $?

monthly payment\nprincipal $122,200\nterm length 30 years\ninterest rate 7%\nmonthly payment $813\nhow much of the 333rd payment will go toward interest if there is an outstanding principal of $20,946?\ninterest on 333rd payment = $?

Answer

Explanation:

Step1: Convert annual interest rate to monthly rate

The annual interest rate is 7%. The monthly interest rate $r$ is calculated by dividing the annual rate by 12. So $r=\frac{7%}{12}=\frac{0.07}{12}$.

Step2: Calculate the interest - portion of the payment

The interest portion of a loan payment is calculated by multiplying the outstanding principal by the monthly interest rate. Given the outstanding principal $P = 20946$. The interest portion $I$ of the 333rd payment is $I = P\times r$. Substitute $P = 20946$ and $r=\frac{0.07}{12}$ into the formula: [I=20946\times\frac{0.07}{12}] [I=\frac{20946\times0.07}{12}=\frac{1466.22}{12}=122.19]

Answer:

$122.19$