(2) A couple borrows $ 10,000 for three (3) years and is charged 8.5% simple interest per year. Assuming that they pay the same amount each month and each month's interest payment is the same, determine how much of theirtenth payment goes to interest and how much goes to principal.

### Given:
- Loan amount (Principal, $ P $): $10,000
- Interest rate ($ r $): 8.5% per year or 0.085
- Time period ($ T $): 3 years
- Monthly payments: 36 months (since 3 years = 36 months)

### Step 1: Calculate total interest
Using the formula for simple interest:

\[
I = P \times r \times T
\]

\[
I = 10,000 \times 0.085 \times 3 = 2,550
\]

The total interest to be paid over 3 years is $2,550.

### Step 2: Determine total amount to be paid
The total amount paid over the 3 years will be the sum of the principal and the interest:

\[
\text{Total Payment} = P + I = 10,000 + 2,550 = 12,550
\]

### Step 3: Monthly payment
Since they are paying equal amounts each month over 36 months:

\[
\text{Monthly Payment} = \frac{\text{Total Payment}}{36} = \frac{12,550}{36} \approx 348.61
\]

### Step 4: Monthly interest
In simple interest, the interest each month remains the same. The monthly interest is:

\[
\text{Monthly Interest} = \frac{\text{Total Interest}}{36} = \frac{2,550}{36} \approx 70.83
\]

### Step 5: Tenth payment breakdown
For the 10th payment, the amount of the payment that goes to interest remains constant at $70.83. The amount going toward the principal in the 10th payment is:

\[
\text{Principal in 10th Payment} = \text{Monthly Payment} - \text{Monthly Interest}
\]

\[
\text{Principal in 10th Payment} = 348.61 - 70.83 = 277.78
\]

### Final Answer:
- Interest portion in the 10th payment: $70.83
- Principal portion in the 10th payment: $277.78

Would you like further details or any clarification?

Here are 5 related questions to consider:
1. How is simple interest different from compound interest?
2. What is the formula for calculating the principal portion in a loan with compound interest?
3. How would the total interest change if the loan had a different interest rate?
4. What happens to the interest and principal portions in amortized loans over time?
5. How would the calculations change if the loan period was longer or shorter?

**Tip:** When dealing with loans, always verify whether interest is calculated using simple or compound interest, as it impacts the total cost of borrowing.

A couple borrows $10,000 for three (3) years and is charged 8.5% simple interest per year. Assuming that they pay the same amount each month and each month's interest payment is the same, determine how much of their tenth payment goes to interest and how much goes to principal.

Calculate the breakdown of the tenth payment on a $10,000 loan at 8.5% simple interest. Learn how much goes toward interest and principal in each payment. This guide covers simple interest, amortization, and monthly payments. Suitable for high school students in Grades 10-12.

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