You borrowed today $50,000 at 12% compounded monthly to be paid back in 36 months. you are expected to pay accumulated interest and 1/36th of the principle each month. how much is your 20th payment?

The 20th payment willbe for 1,625

Explanation:

interest 12% annual

compounding monthly: 12% / 12 = 1%

payment at 20th month

First we will calcualte the principal at the moment of the 20th payment

principal after 19th payment: 23,611.11

23,611.11 x 1% = 236.11 interest expense

principal amortization

50,000 x 1/36 = 1.388,89

total cuota= interest + principal amortization =

                    236.11 + 1,388.89 = 1,625

answer; buyer guide;