To determine how much of the 16th payment will go towards paying down the principal, follow these steps:
1. Identify the given data:
- The monthly payment amount: \[tex]$133
- The interest portion of the 16th payment: \$[/tex]14.09
- Outstanding principal: \[tex]$1,879
2. Calculate the amount of the 16th payment that goes towards the principal:
- To find the principal portion, subtract the interest payment from the total monthly payment.
\[
\text{Principal payment} = \text{Monthly payment} - \text{Interest payment}
\]
3. Substitute the given values:
\[
\text{Principal payment} = 133 - 14.09
\]
4. Perform the subtraction:
\[
\text{Principal payment} = 118.91
\]
Therefore, the portion of the 16th payment that will go towards the principal is \$[/tex]118.91, rounded to the nearest hundredth.
