Consider a student loan of $17 comma 500 at a fixed apr of 9% for 15 years.

a. the monthly payment is $
(round to the nearest cent as needed.)

b. the total payment over the term of the loan is $
(round to the nearest cent as needed.)

c. of the total payment over the term of the loan, % is paid toward the principal and % is paid toward interest.
(round to the nearest tenth as needed.)

  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

__

b) The total payment over the term of the loan is 180 of these monthly payments:

  180·$177.50 = $31,950

__

c) $17,500 is paid toward the principal.

 $14,450 is paid toward interest.