Casey has an amortized loan payment of $400, and the interest they owe for that month is $50. By how much does Casey pay down the principal?

Question

$50

$350

$400

$450

Answer 1

To find out how much Casey pays down the principal, we need to subtract the interest from the total payment.

Casey's total payment is $400, and the interest owed for that month is $50.

Amount paid toward the principal = Total payment - Interest Amount paid toward the principal = $400 - $50 = $350

Therefore, Casey pays down the principal by $350.