To determine how much of the 31st payment will go towards the principal, follow these steps:
1. Identify the total monthly payment: The problem states that the monthly payment is \[tex]$53.
2. Determine the interest portion of the 31st payment: According to the information given, the interest for the 31st payment is \$[/tex]5.96.
3. Calculate the principal portion of the 31st payment: The principal portion can be found by subtracting the interest portion from the total monthly payment:
[tex]\[
\text{Principal on 31st Payment} = \text{Monthly Payment} - \text{Interest on 31st Payment}
\][/tex]
Substituting the given values:
[tex]\[
\text{Principal on 31st Payment} = \$53 - \$5.96
\][/tex]
Simplify the subtraction:
[tex]\[
\text{Principal on 31st Payment} = 53 - 5.96 = 47.04
\][/tex]
4. Round to the nearest hundredth: The calculation already results in a value rounded to the nearest hundredth, which is \[tex]$47.04.
Therefore, the amount of the 31st payment that will go towards the principal is \(\$[/tex]47.04\).
