Need help badly:

Consider a mortgage of $100,000, at a fixed APR of 8% for 30 years.
A. Calculate the monthly payment.
B. Determine the total amount paid over the term of the loan.
C. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.

Question

Need help badly:  

Consider a mortgage of $100,000, at a fixed APR of 8% for 30 years. 
A. Calculate the monthly payment.
B. Determine the total amount paid over the term of the loan.
C. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.

paxpolaris · Answer

is this compound interest?

anonymous · Answer

It a fixed rate mortage formula for A. its b and c I' not so sure about

anonymous · Answer

I'm sorry, its the loan payment formula and I am using it so solve A, but I don't know what B and C is...

paxpolaris · Answer

don't know how to do A.

B= A*30*12

anonymous · Answer

I was thinking just that

anonymous · Answer

that just leaves us with C...

dumbcow · Answer

the principal is 100,000 so interest paid is 360*A - 100,000

paxpolaris · Answer

percent that was principal =$$\Large {100,000 \over B} \times 100\%$$

paxpolaris · Answer

the rest was  was interest

anonymous · Answer

so the rest is left as interest? no more steps?

dumbcow · Answer

yep :)

anonymous · Answer

Thanks to all who helped me out on this one.

dumbcow · Answer

typically for a long 30 yr loan the percent paid toward interest will be much higher than the principal
...banks love that

anonymous · Answer

I'm sure they do...