Question

Based on the information below, choose the correct answers.

Note: The monthly loan payment was calculated at 119 payments of $330.38 plus a final payment of $329.73.

Loan Balance: $25,000.00
Loan Interest Rate: 10.0%
Monthly Loan Payment: $330.38
Number of Payments: 120
Cumulative Payments: $39,644.95
Total Interest Paid: $14,644.95
On average, what dollar amount of each monthly payment is interest? $
What percent of the total payments is total interest? %

Answer 1

Since there are 120 payment and the total interest paid was $ 14,644.95. so the average monthly interest can be calculated by:

Average monthly interest = $ 14,644.95 / 120

Average monthly interest = $ 122.04

 

% total interest = ($ 14,644.95) / $ 39,644.95 x 100

% total interest =36.94 %