Question

Using the information below, choose the correct answers. Amount: $225,000 Rate: 7 % Payments: 360 @ $1,496.93 Total Interest: $313,894.80 How much will be repaid for this loan? $ What percentage of this total is total interest? % What will be the average amount per payment for interest? $

Answer 1

loan = 225000
Total interest = 313894.80
total payment = 538894.80
Percentage of interest = 313894.80/538894.80=58.25%
Average interest payment = 313894.80/360=871.93

Answer 2

1)
`\text{Repaid amount} =\$538894.8`

2)
`x =58.24\%`

3)
`\text{Average amount}=\$871.93`

Explanation:

Given : Amount: $225,000 Rate: 7 % Payments: 360 @ $1,496.93 Total Interest: $313,894.80.

To find : 1) How much will be repaid for this loan?

2) What percentage of this total is total interest?

3) What will be the average amount per payment for interest?

Solution :

Amount: $225,000

Rate: 7 %

Payments: 360 @ $1,496.93

Total Interest: $313,894.80.

1) Total amount which will be repaid is

`\text{Repaid amount} = \text{Amount} + \text{total interest}`

`\text{Repaid amount} =\$225000 + \$313894.80`

`\text{Repaid amount} =\$538894.8`

2) Percentage of this total is total interest is

Let the percentage of total amount that is interest be x

i.e,
`x\% \text{ of repaid amount} = \text{Total interest}`

`(x)/(100)* 538894.8=313894.80`

`x =(313894.80* 100)/(538894.8)`

`x =58.24\%`

3) Average amount per payment for interest is

`\text{Average amount}=\frac{\text{Total interest}}{Number of payments}`

`\text{Average amount}=(313894.80)/(360)`

`\text{Average amount}=\$871.93`