Question

Tarek earns an annual mean gross salary of $61,890.00. What percent of his total salary will he pay in student loan payments if the payments are $250.00 per month for 144 months? Round to the nearest tenth. 4.6%4.7%4.8%4.9%

Answer 1

Given:

Gross salary = $61,890.00

Let's determine the percent of the salary he will pay on loan payments if the payments are $250.00 per month for 144 months.

Let's first find the total amount to be paid in loans:

Total loan payment = $250.00 x 144 = $36,000

The total payment on loans is $36,000

Let's find the number of years in 144 months, where:

1 year = 12 months

`(144)/(12)=\text{ 12 years}`

This means he will make the payment for 12 years.

Now, to find the percent of total salary to be used on loans, we have:

`x\text{ \% of (61890}\ast12)\text{ = 36000}`

Let's solve for x:

`\begin{gathered} (x)/(100)*742680=36000 \\ \\ 742680x=36000*100 \\ \\ 742680x=3600000 \end{gathered}`

Divide both sides by 742680:

`\begin{gathered} (742680x)/(742680)=(3600000)/(742680) \\ \\ x=4.8\text{ \%} \end{gathered}`

Therefore, the percent of his total salary he will pay in student loan payments is 4.8%.

ANSWER:

4.8%