Question

Based on the information below, choose the correct answers.

Note: The monthly loan payment was calculated at 119 payments of $242.66 plus a final payment of $241.78.


Loan Balance: $20,000.00

Loan Interest Rate: 8.00%

Monthly Loan Payment: $242.66

Number of Payments: 120

Cumulative Payments: $29,118.32

Total Interest Paid: $9,118.32


1. On average, what dollar amount of each monthly payment is interest? $

76.99

77.99

75.99


2. What percent of the total payments is total interest? %

31.3

32.4

31.9

Answer 1

1. 75.99
2. 31.3

Explanation:

1. Interest of 9118.32 divided into 120 equal monthly amounts is ...

... 9118.32/120 ≈ 75.99

2. (Total interest)/(total payments) = 9118.32/29118.32 ≈ 0.31315 ≈ 31.3%