Maria takes out a $135,000 mortgage at 4.9% and plans to pay it back in 15 years. her monthly payment is $1,061. what proportion of the total loan payments maria makes goes to interest?

ANSWER:

th proportion of the total loan payments Maria makes goes to interest

SOLUTION:

Given, Maria takes out a $135,000 mortgage at 4.9%  

And plans to pay it back in 15 years.  

Her monthly payment is $1,061.  

We need to find what proportion of the total loan payments Maria makes goes to interest?

Now, let us find the total payment made by her.

Total payment = monthly payment 12 months  15 years

= 1061 x 12 x 15  = 190980

Now,  

Interest amount for 15 years = total payment – mortgage amount taken by her.

= 190980 – 135000  = 55980

Now, proportion of interest =

Hence th proportion of the total loan payments Maria makes goes to interest