Celebrate Holidays Company signed a 9%,10minusyearnote for $ 167 comma 000.The company paid an installment of $ 2 comma 400for the first month. What portion of the first monthly payment is principal? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

$1,147.50

Explanation:

The computation of the principal amount of first monthly payment is shown below:

As we know that

Monthly payment comprises of principal + interest

Monthly payment = interest + principal

where,

Monthly payment is $2,400

Interest would be

= $167,000 × 9% ÷ 12 months

= $1,252.50

So, the principal amount is

= $2,400 - $1,252.50

= $1,147.50

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