Determine how much of the original amount borrowed remains unpaid. Subtract the amount of the principal that has been repaid (from step 3) from the original amount borrowed: (Note: Round your answer to the nearest cent.) $1,500 (Original Amount Borrowed) - $ (Amount of Principal Repaid) = $ (Principal Left Unpaid) Step 5: Cho pays off her loan after only 3 months, which is one-quarter (3/12 = 1/4) of the way through the loan. Cho might (incorrectly) expect to owe only $1,125 of the original amount borrowed (the remaining three-quarters of the original amount borrowed). (Note: Round your answer to the nearest cent.) However, in reality, Cho still owes $ of the original amount borrowed (from step 4). Now you can calculate the prepayment penalty as follows: $ (Amount of Original Loan Unpaid) - $1,125 = $ (Prepayment Penalty)