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Answer:
- to interest: $532.97
- to principal: $54.23
- new balance: $79,891.90
Step-by-step explanation:
The interest is found by multiplying the monthly rate by the balance on the loan. For the first month, the balance is the loan amount.
$79,946.13 × 0.08 ×(1/12) . . . . . one month = 1/12 year
= $532.97
The interest amount in the first payment is $532.97.
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The amount of the first payment that goes to principal is what is left after the interest is paid:
$587.20 -532.97 = $54.23 . . . amount to principal
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The new balance is the previous balance less the amount to principal:
$79,946.13 -54.23 = $79,891.90 . . . new balance
