Answer:
a) monthly payment: $177.50
b) total amount paid: $31,950
c) toward principal: $17,500; toward interest: $14,450
Step-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
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b) The total payment over the term of the loan is 180 of these monthly payments:
180·$177.50 = $31,950
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c) $17,500 is paid toward the principal.
$14,450 is paid toward interest.
