1. **State the problem:** Laura Collins has a mortgage balance of $104000 with an 8% annual interest rate. She makes a monthly payment of $1040. We need to find: (a) The interest portion of the November payment. (b) The principal portion of the payment. (c) The new mortgage balance after the payment. 2. **Formula and explanation:** The monthly interest is calculated by multiplying the annual interest rate by the balance and dividing by 12 (months): $$\text{Interest} = \text{Balance} \times \frac{\text{Annual Interest Rate}}{12}$$ The principal reduction is the total payment minus the interest portion: $$\text{Principal Reduction} = \text{Monthly Payment} - \text{Interest}$$ The new balance is the old balance minus the principal reduction: $$\text{New Balance} = \text{Balance} - \text{Principal Reduction}$$ 3. **Calculate the interest portion:** $$\text{Interest} = 104000 \times \frac{0.08}{12} = 104000 \times 0.0066667 = 693.33$$ 4. **Calculate the principal reduction:** $$\text{Principal Reduction} = 1040 - 693.33 = 346.67$$ 5. **Calculate the new balance:** $$\text{New Balance} = 104000 - 346.67 = 103653.33$$ **Final answers:** (a) Interest amount: $693.33 (b) Principal reduction: $346.67 (c) New balance: $103653.33