Consider a student loan of $17,500 at a fixed APR of 9% for 25 years. Calculate the monthly payment, determine the total amount paid over the term of the loan, and of the total amount paid, what percentage is paid towards the principal, and what percentage is paid for interest?

  1. 👍
  2. 👎
  3. 👁
  1. Monthly Payment: .09/12 months = .0075 monthly rate => $17,500 x .0075 = $131.25 monthly payment.

    Total Amount Paid: n => 25 years x 12 months a year = 300 monthly total payments made => 300 months x $131.25 monthly payment = $39,375 Total Amount Paid over loan.

    Percentage paid towards principle: $17,500/ $39,375 = .44 or 44%
    Percentage paid towards interest: 100% - 44% = 56% or $39,375 - $17,500 = $21, 875 paid towards interest => $21,875 / $39,375 = .555 rounded to .56 => 56%

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math Check My Work Please 2

    15. Lisa takes a loan of $10,500 at a 9% simple interest rate for 7 years. a. How much interest will she pay after 3 years? b. How much interest will she pay in total for the loan? $2,835.00; $6,615.00 $8,280.00; $9,720.00*

  2. math

    A carpenter spent $4500 to purchase a table saw , a circular saw, and a panel saw. He paid 5% down and financed the balance with a 30-month fixed installment loan with an APR of 5.0%. Determine the total finance charge and monthly

  3. Finance

    You are considering borrowing $150,000 to purchase a new home. a. Calculate the monthly payment needed to amortize an 8 percent fixed-rate 30-year mortgage loan. b. Calculate the monthly amortization payment if the loan in (a) was

  4. Financial

    You need a 30-year, fixed-rate mortgage to buy a new home for $235,000. Your mortgage bank will lend you the money at an APR of 5.35 percent for this 360-month loan. However, you can afford monthly payments of only $925, so you

  1. math

    Loan amount = $9,500 Monthly payments = $227.50 Time of loan contract = 5 years True annual interest rate (to the nearest tenth) =

  2. Math

    Lisa takes a loan of $10,500 at a 9% simple interest rate for 7 years. a. How much interest will she pay after 3 years? b. how much interest will she pay in total for the loan? a. $2,835.00; $6,615.00 b. $8,280.00; $9,720.00 c.

  3. U.S. and Global Economics: Involving MATH

    PLZZZ.. Help I just don't understand how to calculate this A landlord wants to acquire an additional apartment building for $250,000. The new building contains eight apartment units, which will each rent for $500 per month. The

  4. financial accounting

    Q2. ABC Ltd. completed the following transactions during April 2018, it’s first month of operation. Apr. 1 Received $20,000 and issued common shares. Apr. 2 Purchased $500 office supplies on account. Apr. 8 Paid $10,000 cash for

  1. Economics

    Which is an example of an unsecured revolving loan? student loan credit card auto loan*** home mortgage

  2. math

    megan borrows £5000 to buy a cat at a rate of 8% over 3 years. how much does she have to pay over the three years? if she pays the loan back every month over three years ,how much is her monthly payment? if there was an

  3. Math

    Suppose you take out a 45​-year ​$100,000 mortgage with an APR of 6​%. You make payments for 2 years ​(24 monthly​ payments) and then consider refinancing the original loan. The new loan would have a term of 20 ​years,

  4. Finance

    You have arranged for a loan on your new car that will require the first payment today. The loan is for $38,500, and the monthly payments are $690. If the loan will be paid off over the next 69 months, what is the APR of the loan?

You can view more similar questions or ask a new question.