# Consider a home mortgage of ​\$225 comma 000225,000at a fixed APR of 33​% for 1515years. a. Calculate the monthly payment.b. Determine the total amount paid over the term of the loan.c. Of the total amount​ paid, what percentage is paid toward the principal and what percentage is paid for interest.

Question
26 views
Consider a home mortgage of
\$225 comma 000225,000
at a fixed APR of
33%
for
1515
years.

a. Calculate the monthly payment.
b. Determine the total amount paid over the term of the loan.
c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
check_circle

Step 1

We are given:

Principal Amount P = 225,000, APR = 3% or 0.03, Years = 15, Number of months in a year n = 12

a. Calculate the monthly payment.

Answer: The formulla for the monthly payment is:

Step 2

b. Determine the total amount paid over the term of the loan.

Answer: The total amount paid over the term of the loan is:

Step 3

c. Of the total amount​ paid, what percentage is paid toward the principal and what percentage is paid for interest.

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

### Other 