Note: The monthly loan payment was calculated at 119 payments of $232.22 plus a final payment of $231.69. Loan Balance: $20,000.00 Loan Interest Rate: 7.00% Monthly Loan Payment: $232.22 Number of Payments: 120 Cumulative Payments: $27,865.87 Total Interest Paid: $7,865.87 On average, what dollar amount of each monthly payment is interest? $ What percent of the total payments is total interest?

Question

Mathematics

Kaitlin

9 May, 08:28

Note: The monthly loan payment was calculated at 119 payments of $232.22 plus a final payment of $231.69. Loan Balance: $20,000.00 Loan Interest Rate: 7.00% Monthly Loan Payment: $232.22 Number of Payments: 120 Cumulative Payments: $27,865.87 Total Interest Paid: $7,865.87 On average, what dollar amount of each monthly payment is interest? $ What percent of the total payments is total interest?

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Matteo Becker · Answer 1

These are the given to the question above:

Loan Balance: $20,000.00

Loan Interest Rate: 7.00%

Monthly Loan Payment: $232.22

Number of Payments: 120 (10 years)

Cumulative Payments: $27,865.87

Total Interest Paid: $7,865.87

What dollar amount of each monthly payment is interest? $655.49

What percent of the total payments is total interest? 28.22%

It is estimated that you will need an annual salary of at least $27,866.40 to be able to afford to repay this loan. This estimate assumes that 10% of your gross monthly income will be devoted to repaying your student loans