Question

Using the information below, choose the correct answers.

Amount: $200,000
Rate: 7%
Payments: 360 @ $774.50
Total Interest: $78,820.00

A. How much will be repaid for this loan? $
B. What percentage of this total is total interest?
C. What will be the average amount per payment for interest?

Answer 1

The amount repaid for this loan is $278,820. The total interest is 28.27% of the total. The average amount per payment for interest is $219.50.

Step-by-step explanation:

A.

The amount repaid for this loan can be calculated by adding the total interest to the loan amount. $200,000 + $78,820 = $278,820.

B.

To find the percentage of the total that is total interest, divide the total interest by the amount repaid and multiply by 100. ($78,820 / $278,820) * 100 = 28.27%.

C.

The average amount per payment for interest can be calculated by dividing the total interest by the number of payments. $78,820 / 360 = $219.50 per payment.

Answer 2

The right answer for the question that is being asked and shown above is that: "C. What will be the average amount per payment for interest?" Using the information below, the correct answer is C. What will be the average amount per payment for interest?