1. **State the problem:** Susan Anderson has a mortgage balance of $321,000 on April 1 with an interest rate of 6.2% annually. She makes a monthly payment of $2568. We need to find: (a) Interest portion of the payment (b) Principal reduction portion (c) New balance after payment 2. **Formula for monthly interest:** The monthly interest is calculated by multiplying the principal balance by the monthly interest rate. Monthly interest rate = $\frac{6.2}{100} \div 12 = 0.0051667$ Interest amount = Principal $\times$ Monthly interest rate 3. **Calculate interest amount:** Interest = $321000 \times 0.0051667 = 1658.33$ 4. **Calculate principal reduction:** Principal reduction = Total monthly payment $-$ Interest amount Principal reduction = $2568 - 1658.33 = 909.67$ 5. **Calculate new balance:** New balance = Previous balance $-$ Principal reduction New balance = $321000 - 909.67 = 320090.33$ **Final answers:** (a) Interest amount: $1658.33$ (b) Principal reduction: $909.67$ (c) New balance: $320090.33$