monthly payment principal $174,900 term lengt...
monthly payment principal $174,900 term length 30 years interest rate 4% monthly payment $835 how much of the 81st payment will go toward interest if there is an outstanding principal of $151,840? interest on 81st payment = $? round to the nearest hundredth.
Answer
# Explanation:
## Step1: Convert annual rate to monthly rate
The annual interest rate is 4% or 0.04. The monthly - interest rate $r$ is $\frac{0.04}{12}$.
## Step2: Calculate interest for 81st payment
The interest portion of a loan payment is calculated by multiplying the outstanding principal $P$ by the monthly - interest rate. Here, $P = 151840$ and $r=\frac{0.04}{12}$. So the interest $I$ is $I = 151840\times\frac{0.04}{12}$.
$I=\frac{151840\times0.04}{12}=\frac{6073.6}{12}\approx506.13$
# Answer:
$506.13$