HELP PLEASE!!! ASSIGNMENT DUE SOON

Question

Huan accepted an in-store loan on a computer she just purchased. The monthly payment is $64.53 on the $2,000 computer with a 12% APR for 3 years. Determine the portion of the monthly payment that will go towards interest and principal for the first two months.

Answer 1

Assuming that the interest is simple daily interest (SDI), the year has 365 days, and that both months have 30 days, after the first month the amount of interest that will accrue is equal to

0.12 * 30 * 2000 / 365 = 19.73

So one payment of 64.53 will take 64.53 - 19.73 = 44.80 from the principal.

Thus, 19.73 will go toward interest and 44.80 will go toward the principal. The new principal will be 2000 - 44.80 = 1955.20.

After the second month (again, assuming 30 days and SDI) the amount of interest that will accrue is equal to

0.12 * 30 * 1955.20 / 365 = 19.28.

One payment of 64.53 will take 64.53 - 19.28 = 45.25 from the principal.

Thus, 19.28 will go toward interest and 45.25 will go toward the principal. The new principal will be 1955.20 - 45.25 = 1909.95.