Question

If you pay $1,500.00 toward the first month’s payment in problem #3, how much is applied toward the principal?
Responses

$549.00
$549.00 - no response given

$1,420.75
$1,420.75 - no response given

$839.58
$839.58 - no response given

$707.50
$707.50 - no response given

Answer 1

I don't have the text of problem #3, so I can't compute the principal portion yet. Please paste problem #3 (loan amount, annual interest rate, term or scheduled monthly payment, and whether $1,500 is the scheduled payment or an extra payment).

How to compute it once I have those numbers:
- Monthly interest = loan balance × (annual interest rate / 12).
- Principal portion = amount paid toward the payment − monthly interest.

Example: if the loan balance is $100,000 and the annual rate is 6%,
- monthly interest = 100,000 × 0.06/12 = $500
- principal portion of a $1,500 payment = 1,500 − 500 = $1,000

Paste problem #3 and I’ll compute which of the choices is correct.