Answer:
a. payment: $1266.71
b. total paid: $456, 015.60
c. fraction to principal: 54.8%; fraction to interest: 45.2%
Step-by-step explanation:
<h3>a.</h3>
The amortization formula tells you the monthly payment is ...
A = P(r/12)/(1 -(1 +r/12)^(-12t))
Payment on principal P at annual rate r for t years.
A = $250,000(0.045/12)/(1 -(1 +0.045/12)^(-12·30)) ≈ $1266.71
The monthly payment is $1266.71.
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<h3>b.</h3>
360 monthly payments of $1266.71 will have a total value of ...
360 × $1266.71 = $456,015.60 . . . . total amount paid
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<h3>c.</h3>
Of course, $250,000 is paid on the principal. That percentage is ...
$250,000/$456,015.60 × 100% ≈ 54.8% . . . to principal
The remaining fraction is paid for interest:
100% -54.8% = 45.2% . . . to interest
