The amount applied to the principal for the third month of a 4-year loan of $50,000 at an interest rate of 10% per year with monthly payments is $865.71.
The amount of the payment applied to the principal in any payment period is the total payment less the interest amount for the payment period.
For example, in this case, the periodic payment is $1,268.13. However, the interest amount for the month is $402.42 ($48,289.98 x 10% x 1/12).
The amount of the payment applied to the principal is $865.71 ($1,268.13 - $402.42).
This can be computed using an online finance calculator that calculates the periodic payment and prepares a monthly payment schedule as below.
N (# of periods) = 48 (4 x 12)
I/Y (Interest per year) = 10%
PV (Present Value) = $50,000
FV (Future Value) = $0
Results:
PMT = $1,268.13
Sum of all periodic payments = $60,870.20
Total Interest = $10,870.20
Monthly Schedule
Period PV PMT Interest Principal FV
1 $50,000.00 $1,268.13 $416.67 $851.46 $49,148.54
2 $49,148.54 $1,268.13 $409.57 $858.56 48,289.98
3 $48,289.98 $1,268.13 $402.42 $865.71 $47,424.27
Thus, the amount of the payment applied to the principal is $865.71.
Learn more about computing periodic payments and interests at https://brainly.com/question/24576997
