Q:

Consider a student loan of ​$17 comma 500 at a fixed APR of 9​% for 15 years.a. The monthly payment is ​$_____​(round to the nearest cent as​ needed.)b. The total payment over the term of the loan is ​$______​(Round to the nearest cent as​ needed.)c. Of the total payment over the term of the​ loan, _____​% is paid toward the principal and _____​% is paid toward interest.​(Round to the nearest tenth as​ needed.)

Accepted Solution

A:
Answer:   a) monthly payment: $177.50   b) total amount paid: $31,950   c) toward principal: $17,500; toward interest: $14,450Step-by-step explanation:a) The amount of the monthly payment (A) is computed from the principal (P), the annual interest rate (r) and the number of years (n) using the formula ...   A = P·(r/12)/(1 -(1 +r/12)^(-12n))Filling in your numbers, we can use r/12 = 0.09/12 = 0.0075, and 12n = 12·15 = 180:   A = $17500·0.0075/(1 - 1.0075^-180) ≈ $177.50__b) The total payment over the term of the loan is 180 of these monthly payments:   180·$177.50 = $31,950__c) $17,500 is paid toward the principal.  $14,450 is paid toward interest.