Question

Maria takes out a $135,000 mortgage at 4.9% and plans to pay it back in 15 years. Her monthly payment is $1,061. What proportion of the total loan payments Maria makes goes to interest?

Answer 1

The answer would be 0.1%.

Explanation:

In order to find this out, you must do the amount given to the principal divided by the initial principal. In this case, it would be 288/135,000. This gives you the answer 0.0012255319. After that multiply by 100 to get the percentage. This should give you the answer of 0.1%.

Answer 2

`(311)/(1061)` th proportion of the total loan payments Maria makes goes to interest

SOLUTION:

Given, Maria takes out a $135,000 mortgage at 4.9%

And plans to pay it back in 15 years.

Her monthly payment is $1,061.

We need to find what proportion of the total loan payments Maria makes goes to interest?

Now, let us find the total payment made by her.

Total payment = monthly payment
`*` 12 months
`*` 15 years

= 1061 x 12 x 15 = 190980

Now,

Interest amount for 15 years = total payment – mortgage amount taken by her.

= 190980 – 135000 = 55980

Now, proportion of interest =
`\frac{\text { interest paid }}{\text { total loan payments }}`

`=(55980)/(190980)=(311)/(1061)`

Hence
`(311)/(1061)` th proportion of the total loan payments Maria makes goes to interest