SOLUTION: Consider a student loan of ​$22,500 at a fixed APR of 9% for 25 years. a. Calculate the monthly payment.​(Do not round until the final answer. Then round to the neares

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Question 1131064: Consider a student loan of ​$22,500 at a fixed APR of 9% for 25 years.
a. Calculate the monthly payment.​(Do not round until the final answer. Then round to the nearest cent as​ needed.)
b. Determine the total amount paid over the term of the loan.(Round to the nearest cent as​ needed.)
c. Of the total amount​ paid, what percentage is paid toward the principal.(Round to the nearest tenth as​ needed.)

Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
P=rPV/(1-(1+r)^(-nt)), where r is rate/year (n) and t is number of years
P=(.09/12)*22500/(1-(1.0075^300)
=168.75/0.8937
=$188.82
Total amount paid is the above *300 months, or $56646
the principal was $22500, so the percentage paid towards it is 39.7%

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