To determine how much of the 16th payment will go towards the principal, follow these steps:
1. Identify the details for the 16th payment:
- Outstanding principal balance before the 16th payment: \[tex]$4,112
- Monthly payment amount: \$[/tex]147
- Interest portion of the 16th payment: \[tex]$41.12
2. Recall that the monthly payment is typically split between interest and principal repayment:
- The interest portion of the payment can be calculated based on the outstanding principal and the monthly interest rate. However, it's given in the problem that the interest for the 16th payment is \$[/tex]41.12.
- The remainder of the monthly payment after covering the interest goes towards reducing the principal.
3. Calculate the amount of the 16th payment that goes towards the principal:
- Monthly Payment: \[tex]$147
- Interest portion of the 16th payment: \$[/tex]41.12
- To find the principal portion, subtract the interest portion from the total monthly payment:
[tex]\[
\text{{Principal on 16th payment}} = \text{{Monthly Payment}} - \text{{Interest on 16th Payment}}
\][/tex]
[tex]\[
\text{{Principal on 16th payment}} = \$147 - \$41.12
\][/tex]
[tex]\[
\text{{Principal on 16th payment}} = \$105.88
\][/tex]
Therefore, the amount of the 16th payment that will go towards the principal is \$105.88.
