The total payment amount is 1600 the remaining principal bal

The total payment amount is $1,600, the remaining principal balance before this next payment is $48,400, and the principal amount of this payment is $1,200. Therefore, the interest expense portion of this particular payment is?

Solution

Total payment amount = $1,600

Principal amount = $1,200

Loan payment amount consist of principal portion and interest portion.

Interest expense portion = Total payment amount - Principal amount = $1,600 - $1,200 = $400