Question

Consider the following loan. Complete parts (a)-(c) below.An individual borrowed $67,000 at an APR of 3%, which will be paid off with monthly payments of 347$ for 22 years.a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.The amount borrowed is $____ the annual interest rate is ____, the number of payments per year is _____, the loan term is _____ years, and the payment amount is _____$  b. How many total payments does the loan require? What is the total amount paid over the full term of the loan?There are ____ payments toward the loan and the total amount paid is ____$  c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest?The percentage paid toward the principal is _____% and the percentage paid for interest is ____%.(Round to the nearest tenth as needed.)

Answer 1

The individual borrowed $67,000 at an APR of 3%, with monthly payments of $347 for 22 years. The total amount paid over the full term of the loan is $91,368.

Step-by-step explanation:

The amount borrowed is $67,000, the annual interest rate is 3%, the number of payments per year is 12, the loan term is 22 years, and the payment amount is $347.

b. The loan requires a total of 264 payments, and the total amount paid over the full term of the loan is $91,368.

c. Of the total amount paid, 54.3% is paid toward the principal and 45.7% is paid for interest.