Question

Using the information below, choose the correct answers. Amount: $225,000 Rate: 7 % Payments: 360 @ $1,496.93 Total Interest: $313,894.80 How much will be repaid for this loan? $ What percentage of this total is total interest? % What will be the average amount per payment for interest? $

Answer 1

Answer:

1) $\text{Repaid amount} =\ 538894.8$

2) $x =58.24\%$

3) $\text{Average amount}=\ 871.93$

Step-by-step explanation:

Given : Amount: $225,000 Rate: 7 % Payments: 360 @ $1,496.93 Total Interest: $313,894.80.

To find : 1) How much will be repaid for this loan?

2) What percentage of this total is total interest?

3) What will be the average amount per payment for interest?

Solution :

Amount: $225,000

Rate: 7 %

Payments: 360 @ $1,496.93

Total Interest: $313,894.80.

1) Total amount which will be repaid is

$\text{Repaid amount} = \text{Amount} + \text{total interest}$

$\text{Repaid amount} =\ 225000 + \ 313894.80$

$\text{Repaid amount} =\ 538894.8$

2) Percentage of this total is total interest is

Let the percentage of total amount that is interest be x

i.e, $x\% \text{ of repaid amount} = \text{Total interest}$

$\frac{x}{100}\times 538894.8=313894.80$

$x =\frac{313894.80\times 100}{538894.8}$

$x =58.24\%$

3) Average amount per payment for interest is

$\text{Average amount}=\frac{\text{Total interest}}{Number of payments}$

$\text{Average amount}=\frac{313894.80}{360}$

$\text{Average amount}=\ 871.93$

Answer 2

Loan = 225000
Total interest = 313894.80
total payment = 538894.80
Percentage of interest = 313894.80/538894.80=58.25%
Average interest payment = 313894.80/360=871.93