Question

Consider a student loan of $22 comma 500 at a fixed APR of 12% for 15 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 content area bottom
Part 1
a. The monthly payment is $
  
enter your response here.
(Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

Use the formula: M=P⋅ (1+r) ^n/ −1 r(1+r)
M is the monthly payment.
𝑃
P is the principal loan amount ($22,500).
𝑟
r is the monthly interest rate (annual rate divided by 12).
𝑛
n is the total number of payments (loan term in years multiplied by 12 months/year).

_________________________________________________________________________--
Calculate the Monthly Interest Rate
The annual interest rate is 12%, so the monthly interest rate is:

Anual interest rate is 12% so the monthly interest rate is
r=12%/12= 0.12/12=0.01
The loan term is 15 years, so the total number of monthly payments is:


 
n=15×12=180 months
_________________________________________________________________________________
Subs the known values into the formula.
M= 22500 x 0.02(1+0.01)^180/ (1+0.01)^180-1
Calculate it, its a bit more maths. Which you could do yourself, but long maths short the answer is approximately $270.00.

Answer 2

Monthly Payment is $247.74

So that makes the Total Paid Over Loan at $247.74 * 180 = $44,593.20.
Out of the total.....Principal: $22,500 and the interest: $44,593.20 - $22,500 = $22,093.20

The percentages would be
Principal = $22,500 ÷ $44,593.20 × 100 = 50.45%
Interest = $22,093.20 ÷ $44,593.20 × 100 = 49.55%
💀💀💀

Answer 3

cool

Answer 4

cool

Answer 5

W