Question

Note: The monthly loan payment was calculated at 119 payments of $330.38 plus a final payment of $329.73. Loan Balance: $25,000.00 Loan Interest Rate: 10.0% Monthly Loan Payment: $330.38 Number of Payments: 120 Cumulative Payments: $39,644.95 Total Interest Paid: $14,644.95 On average, what dollar amount of each monthly payment is interest? $ What percent of the total payments is total interest? %

Answer 1

Average monthly interest = $ 122.04

% total interest =36.94 %

Explanation:

There are 120 cumulative payments and the total interest paid was $ 14,644.95.

Hence, the average monthly interest is :

Average monthly interest = $ 14,644.95 / 120

Average monthly interest = $ 122.04

% total interest

= ($ 14,644.95) / $ 39,644.95 x 100

% total interest =36.94 %