To find the percentage of the total amount paid toward the principal and the percentage paid for interest, let's go through the steps.

Step 1: Identify the principal amount.

• The principal amount borrowed is $82,000.

Step 2: Calculate the total interest paid.

• The total amount paid over the full term of the loan is $127,224 (as calculated earlier).
• The interest paid is the difference between the total amount paid and the principal. $\text{Interest paid} = \text{Total amount paid} - \text{Principal}$ $\text{Interest paid} = 127,224 - 82,000 = 45,224 \text{ dollars}$

Step 3: Calculate the percentages.

• Percentage paid toward the principal: $\text{Percentage toward principal} = \left(\frac{\text{Principal}}{\text{Total amount paid}}\right) \times 100$ $\text{Percentage toward principal} = \left(\frac{82,000}{127,224}\right) \times 100 \approx 64.45\%$

• Percentage paid for interest: $\text{Percentage toward interest} = \left(\frac{\text{Interest paid}}{\text{Total amount paid}}\right) \times 100$ $\text{Percentage toward interest} = \left(\frac{45,224}{127,224}\right) \times 100 \approx 35.55\%$

Final Answers:

• Percentage paid toward the principal: 64.45%
• Percentage paid for interest: 35.55%

Would you like more details or have any further questions?

Here are five related questions:

1. How does the interest rate affect the percentage paid toward interest versus principal?
2. What would happen to these percentages if the interest rate were higher?
3. How could you pay less in interest over the life of the loan?
4. What role does loan term play in determining these percentages?
5. How would making additional payments affect the amount of interest paid?

Tip: Paying off loans earlier or making extra payments can significantly reduce the amount of interest paid over time.