To determine how much of the 16th payment will go to interest given that the outstanding principal is [tex]$4,112, we need to follow these steps:
1. Determine the annual interest rate:
The annual interest rate given is \(12\% \).
2. Convert the annual interest rate to a monthly interest rate:
Since there are 12 months in a year, the monthly interest rate is calculated by dividing the annual interest rate by 12. Thus,
\[
\text{Monthly Interest Rate} = \frac{12\%}{12} = 1\%
\]
3. Express the monthly interest rate as a decimal:
Converting \(1\% \) to a decimal,
\[
1\% = 0.01
\]
4. Calculate the interest for the 16th payment:
The interest portion of the payment is found by multiplying the outstanding principal by the monthly interest rate. Thus,
\[
\text{Interest for 16th payment} = \text{Outstanding Principal} \times \text{Monthly Interest Rate}
\]
Substituting in the given values,
\[
\text{Interest for 16th payment} = 4112 \times 0.01 = 41.12
\]
Therefore, the amount of the 16th payment that will go to interest is \(\$[/tex]41.12\).
