Question

Note: The monthly loan payment was calculated at 119 payments of $232.22 plus a final payment of $231.69. Loan Balance: $20,000.00 Loan Interest Rate: 7.00% Monthly Loan Payment: $232.22 Number of Payments: 120 Cumulative Payments: $27,865.87 Total Interest Paid: $7,865.87 On average, what dollar amount of each monthly payment is interest? $ What percent of the total payments is total interest?

Answer 1

I was just wanting to add that the answer was most of the way right it as just instead of 655.55 it is 65.55 instead and everything else was right

Explanation:

Answer 2

These are the given to the question above:
Loan Balance: $20,000.00
Loan Interest Rate: 7.00%
Monthly Loan Payment: $232.22
Number of Payments: 120 (10 years)
Cumulative Payments: $27,865.87
Total Interest Paid: $7,865.87

What dollar amount of each monthly payment is interest? $655.49
What percent of the total payments is total interest? 28.22%

It is estimated that you will need an annual salary of at least $27,866.40 to be able to afford to repay this loan. This estimate assumes that 10% of your gross monthly income will be devoted to repaying your student loans