Holly plans to attend community college next year. Her expenses are only $1,200 because her parents are paying the rest. Holly e
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<u>The formula for the monthly payment</u>.....
, where P = the principal amount, r = the monthly interest rate and n = the total number of months.
Here annual interest rate is given as 4.5%
So, the monthly interest rate
Total number of months
Also given that, the principal amount is $225000
a. So, the monthly payment will be.....
Thus, the monthly payment will be approximately $1140
b. The <u>total amount paid</u> over the term of the loan will be:
c. As the principal amount was $225000 , so the amount of interest
So, the percentage of amount that is paid toward the principal
and the percentage of amount that is paid toward the interest