The monthly payment is; $104.9; The total amount paid over the term of the loan is; $31470
<h3>How to calculate APR?</h3>
We are given;
Loan principal = $12,500
Interest rate = 12%
Number of payments per year = 12 payments per year.
Loan term = 25 years.
Formula for monthly payment is;
PMT = (p * APR/n)/[1 - (1 + APR/n)^(-nY)]
Where;
p is principal
APR is interest rate
n is number of payments per year
Y is loan term
Thus;
PMT = (12500 * 0.09/12)/[1 - (1 + 0.09/12)^(-12 * 25)]
PMT = 93.75/(1 - 0.106288)
PMT = $104.9
B) Total amount paid over the loan term is;
A = PMT * m * n
where;
m is number of months in a year,
n is number of years
A = 104.9 * 12 * 25
A = $31470
C) The principal as a percentage of the loan is;
P/A = 12500/31470
P/A = 39.72%
Percentage paid for interest is = 100% - 39.72% = 80.28%
Read more about APR at; brainly.com/question/24703884
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