Question

Based on the information below, choose the correct answer. Note: The monthly loan payment was calculated at 119 payments of $367.96 plus a final payment of $367.57. Loan Balance: $30,000.00 Loan Interest Rate: 8.25% Number of Payments: 120 Monthly Loan Payment: $367.96 Cumulative Payments: $44,154.81 Total Interest Paid: $14,154.81 On average, what dollar amount of each monthly payment is interest ? $ What percent of the total payments is total interest ? %

Answer 1

= 14,154.81 / 120 = $117.96

= 14,154.81 / 44,154.81 = 32.1%

Answer 2

1)

The amount of each monthly payment on interest= $117.95675

2)

The percent of the total payments is total interest is:

32.06%

Explanation:

We are given the information as:

The monthly loan payment was calculated at 119 payments of $367.96 plus a final payment of $367.57.

Loan Balance: $30,000.00 .

Loan Interest Rate: 8.25%

Number of Payments: 120

Monthly Loan Payment: $367.96

Cumulative Payments: $44,154.81

Total Interest Paid: $14,154.81 .

1)

The amount of monthly payment on interest is equal to the total interest paid divided by the number of months:

i.e. Monthly payment on interest=
`(14154.81)/(120)=$117.95675`

Hence, the amount of each monthly payment on interest= $117.95675.

2)

What percent of the total payments is total interest ?

It is equal to total interest divided by the total payment multiplied by 100.

i.e.
`(14,154.81)/(44,154.81)* 100=32.06\%`