To determine how much of the 14th payment will go towards the principal, we need to follow these steps:
1. Identify the total monthly payment.
The monthly payment for the loan is [tex]$95.
2. Determine the interest portion of the 14th payment.
The interest on the 14th payment is given as $[/tex]7.50.
3. Calculate the principal repayment during the 14th payment.
The principal repayment is the portion of the monthly payment that goes towards paying off the outstanding principal, after subtracting the interest portion.
We can find the principal portion by subtracting the interest portion from the total monthly payment:
[tex]\[
\text{Principal on 14th Payment} = \text{Monthly Payment} - \text{Interest on 14th Payment}
\][/tex]
Substituting the respective values:
[tex]\[
\text{Principal on 14th Payment} = 95 - 7.50
\][/tex]
Therefore,
[tex]\[
\text{Principal on 14th Payment} = 87.50
\][/tex]
So, $87.50 of the 14th payment will go towards paying off the principal of the loan.
