monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much…

monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much of the 86th payment will go toward interest if there is an outstanding principal of $119,556?\ninterest on 86th payment = $?\nround to the nearest hundredth.

monthly payment\nprincipal $133,600\nterm length 30 years\ninterest rate 6%\nmonthly payment $801\nhow much of the 86th payment will go toward interest if there is an outstanding principal of $119,556?\ninterest on 86th payment = $?\nround to the nearest hundredth.

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is 6%, so the monthly interest rate $r=\frac{6%}{12}=0.005$.

Step2: Calculate interest on 86th payment

The interest on a payment is calculated based on the outstanding - principal. The formula for the interest portion of a loan payment is $I = P\times r$, where $P$ is the outstanding principal and $r$ is the monthly interest rate. Given $P = 119556$ and $r=0.005$. Then $I=119556\times0.005$. $I = 597.78$

Answer:

$597.78$