Question

Charley Bateman obtained a loan of $2,400 to install a solar panel on his roof. The interest rate is 12% and the monthly payment is $113.04. How much of the first monthly payment covered principal?

Answer 1

Charley Bateman obtained a loan of $2,400 to install a solar panel on his roof. since the interest rate is 12 %, so the amount of the fisrt monthly payment covered he principal is 100 - 12 = 88 % of the monthly payment. so the answer is monthly payment covered principal = $ 113.04 * 0.88 = $ 99.48