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

Question

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

To find the average dollar amount of each monthly payment that is interest:

1. Total Interest Paid: This is given as $14,644.95.
2. Number of Payments: This is given as 120 payments.

Average interest per month = Total Interest Paid / Number of Payments \[ \text{Average interest per month} = \frac{14,644.95}{120} \approx 122.04 \]

So, on average, approximately $122.04 of each monthly payment is interest.

Next, to find the percentage of total payments that is total interest:

1. Cumulative Payments: This is given as $39,644.95.
2. Total Interest Paid: This is $14,644.95.

Percentage of total payments that is total interest = (Total Interest Paid / Cumulative Payments) × 100 \[ \text{Percentage of total payments that is total interest} = \left( \frac{14,644.95}{39,644.95} \right) \times 100 \approx 36.92% \]

So, the percentage of total payments that is total interest is approximately 36.92%.