. Ellen has a thirty-year mortgage with level monthly payments. The amount of principal in her 82nd payment is $259.34, and the amount of principal in her 56th payment is $230.19. Find the amount of interest in her 133rd payment.

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Answer:

Explanation:

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The amount of interest in the 133rd payment will be $328.45.

Since the amount of principal in her 82nd payment is $259.34, and the amount of principal in her 56th payment is $230.19. This will be:

a + 81d = 259.34 ..... i

a + 55d = 230.19 ..... ii

Subtract equation ii from i

26d = 29.15

d = 29.15/26 = 1.1211538

From equation ii,

a + 55d = 230.19

a + 55(1.1211538)

a = 230.19 - 61.663459

a = 168.527

Therefore, the amount of interest in her 133rd payment will be calculated thus:

= a + 132d

= 168.527 + 132(1.1211538)

= 168.527 + 159.923

= 328.45

In conclusion, the correct option is $328.45.

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