Let's solve the problem step-by-step to determine how much of the 20th payment will go toward the principal.
1. Identify Given Information:
- Monthly Payment: \[tex]$35
- Interest on 20th Payment: \$[/tex]10.63
2. Determine the Amount of the 20th Payment Applied to Interest:
- Given that the interest portion of the 20th payment is \[tex]$10.63.
3. Calculate the Principal Portion of the 20th Payment:
- The principal portion of any installment payment is the total monthly payment minus the interest portion.
- Principal on 20th Payment = Monthly Payment - Interest on 20th Payment
- Principal on 20th Payment = \$[/tex]35.00 - \[tex]$10.63
4. Perform the Calculation:
- Subtract the interest amount from the total monthly payment:
\[
35.00 - 10.63 = 24.37
\]
5. Rounding:
- As required, round the result to the nearest hundredth (which is already done).
So, the principal portion of the 20th payment is \$[/tex]24.37.
Thus, the principal payment on the 20th payment is [tex]\(\boxed{24.37}\)[/tex].
