Personal Finance Help (10 POINTS!)

1. Ralph Phillips obtained a 12-months, $1,500.00 loan at 12 percent from his credit union. His monthly payment is $133.20. For the first payment:

- What is the interest?

- What is the payment to principal?

- What is the new balance?

Interest for the first month
= 1% of 1500
= $ 15
Payment to principal
= $ 133.20 - 15
= $ 118.20
New Balance of unpaid principal
= $ 1500 - 118.20
= $ 1381.80.