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

Interest
2,400×0.01
=24
monthly payment covered principle
113.04−24
=89.04

Hope it helps

Answer 2

Answer:

$89.04$ $

Step-by-step explanation:

The interest rate is on annual basis

Amount collected as interest per month

$= (\frac{12}{100} * 2400)/12\\= 24$

The principal amount in the first monthly payment

$= 113.04 -24\\= 89.04$