To determine how much of the 31st payment goes towards the principal, follow these steps:
1. Identify the total monthly payment made.
- The monthly payment is \[tex]$53.
2. Identify the interest portion of the payment.
- The interest payment for the 31st installment is \$[/tex]5.96.
3. Subtract the interest payment from the total monthly payment to find the principal payment.
- The principal payment is calculated by subtracting the interest payment from the total monthly payment:
[tex]\[ \text{Principal Payment} = \text{Monthly Payment} - \text{Interest Payment} \][/tex]
[tex]\[ \text{Principal Payment} = 53 - 5.96 \][/tex]
4. Simplify the principal payment calculation:
[tex]\[ 53 - 5.96 = 47.04 \][/tex]
5. Round the result to the nearest hundredth if necessary.
So, the principal portion of the 31st payment is \$47.04.
