Question

Using the information below, choose the correct answers.

Amount: $125,000
Rate: 7.5 %
Payments: 360 @ $874.02
Total Interest: $189,647.20

1. How much will be repaid for this loan?
A. 189,646.53
B. 125,000.00
C. 314,647.20

2. What percentage of this total is total interest?
A. 60.3%
B. 64.2%
C. 55.6%

3. What will be the average amount per payment for interest?
A. 347.22
B. 526.80
C. 874.20

Answer 1

A=314647.20

B=60.3

C=526.80

Explanation:

odyssey ware

Answer 2

1. $314,647.20
2. 60.3%
3. $526.80

Explanation:

From the given information,

The down-payment amount is $125,000

Rate of interest = 7.5%

Monthly payment = $874.02

Number of periods = 360 months

Total interest paid = $189,647.20

1. How much will be repaid for this loan-

As you paid a monthly payment of $874.02 for 360 months, so total paid amount is,

`=874.02* 360=\$314,647.20`

2. What percentage of this total is total interest

As you have paid total of $314,647.20 on the interest of $189,647.20, so the percentage will be

`=(189647.20)/(314647.20)* 100=0.603* 100=60.3\%`

3. What will be the average amount per payment for interest

As you paid an interest of $189,647.20 in 360 months, so average amount of interest per payment is,

`=(189,647.20)/(360)=\$526.80`