Answer:
Explanation:
b)From the question, we have it that there are 12 payments in a year and this goes on for 25 years
The number of repayments is:
[tex]\text{ 25}\times12=\text{ }300[/tex]
Now, to get the total amount paid, we have to multiply the number of repayments by the payment per repayment:
[tex]\text{ 300}\times\text{ 445 = \$133,500}[/tex]
c) of the total amount paid, we want to get the value paid towards the principal and the amount paid as interest
The loan value is $63,000 and the total amount repaid is $133,500
The amount paid as interest is the difference between the amount paid and the amount borrowed:
[tex]\text{ interest = \$133,500 - \$63,000 = \$70,500}[/tex]
We have the percentage as:
[tex]\begin{gathered} \frac{63000}{133500}\text{ = 47.2\% } \\ \text{This is the percentage paid towards principal} \\ \text{Percentage towards interest is 100 - 47.2 = 52.8 \%} \end{gathered}[/tex]
