a. $231.44
b. $83,318.40
c. Principal=27%
Interest=73%
Step-by-step explanation:
a.#The starting loan principal = $22,500; the interest rate = 12%; there are 12 payments per year; the loan term = 30 years;the monthly payment is calculated as;
Hence , the monthly payment is $231.44
b. The total amount paid over the loan's term is calculated using the formula:
m-number of months in a year,
n-number of years
PM-monthly payments.
Hence, the total amount paid over the term of the loan is $83,318.40
c. We then calculate the interest and principal as a % of total loan repayments:
Hence, principal portion is 27% and the interest portion is 73%