monthly payment\nprincipal $219,400\nterm length 30 years\ninterest rate 3%\nmonthly payment $925\nhow much…

monthly payment\nprincipal $219,400\nterm length 30 years\ninterest rate 3%\nmonthly payment $925\nhow much of the 39th payment will go toward interest if there is an outstanding principal of $204,411?\ninterest on 39th payment = $?\nround to the nearest hundredth.

monthly payment\nprincipal $219,400\nterm length 30 years\ninterest rate 3%\nmonthly payment $925\nhow much of the 39th payment will go toward interest if there is an outstanding principal of $204,411?\ninterest on 39th payment = $?\nround to the nearest hundredth.

Answer

Explanation:

Step1: Convert annual interest rate to monthly rate

The annual interest rate is 3%. The monthly interest rate $r$ is calculated by dividing the annual rate by 12. So $r=\frac{3%}{12}= 0.03\div12 = 0.0025$.

Step2: Calculate the interest portion of the 39th - payment

The interest portion of a loan payment is calculated by multiplying the outstanding principal by the monthly - interest rate. Given the outstanding principal $P = 204411$, the interest portion $I$ of the 39th payment is $I=P\times r$. $I = 204411\times0.0025=511.0275$.

Answer:

$511.03$