Based on the information below, choose the correct answer. Note: The monthly loan payment was calculated at 119 payments of $185.98 plus a final payment of $185.70. Loan Balance: $15,000.00 LoanInterest Rate: 8.50% Monthly Loan Payment: $185.98 Number of Payments: 120 Cumulative Payments: $22,317.32 Total Interest Paid: $7,317.32 On average, what dollar amount of each monthly payment is interest? $ 60.9862.9861.98 What percent of the total payments is total interest? 32.831.833.8 %
We are given with 119 payments of $185.98 plus a final payment of $185.70 Loan Balance: $15,000.00 Loan Interest Rate: 8.50% Monthly Loan Payment: $185.98 Number of Payments: 120 Cumulative Payments: $22,317.32 Total Interest Paid: $7,317.32
The dollar amount of each monthly payment that is interest is $7,317.32 / 120 = $60.98
The percent of total interest of the total payment is $7,317.32 / $22,317.32 * 100 = 32.83%
