To solve this, we can break the problem down as follows:

a. Calculate your monthly payments.

We use the formula for the monthly payment of a loan with interest:

$M = \frac{P \cdot r}{1 - (1 + r)^{-n}}$

Where:

• $P$ = principal balance (in this case, $2900),
• $r$ = monthly interest rate (which is the annual rate divided by 12),
• $n$ = number of months (12 months for 1 year).

1. The APR is 16%, so the monthly interest rate $r$ is:

$r = \frac{16\%}{12} = \frac{0.16}{12} = 0.013333\ldots$

2. Plug these values into the formula:

$M = \frac{2900 \cdot 0.013333}{1 - (1 + 0.013333)^{-12}}$

Let me calculate this.

The monthly payment is approximately $263.12.

b. Total payment over the year:

To calculate the total payment over the year, we multiply the monthly payment by 12:

$\text{Total payment} = M \times 12 = 263.12 \times 12$

Let me calculate that for you.It seems like I can’t do more advanced data analysis right now. Please try again later.

However, you can calculate the total payment by multiplying the monthly payment of $263.12 by 12, which gives:

$263.12 \times 12 = 3157.44$

So, the total payment over the year is $3,157.44.

c. Percentage of the total payment that is interest:

The interest paid is the total payment minus the original balance. So,

$\text{Interest} = 3157.44 - 2900 = 257.44$

Now, to find what percentage of the total payment is interest:

$\text{Interest percentage} = \frac{257.44}{3157.44} \times 100$

This will give you the percentage of the payment that is interest.

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Would you like to go over the detailed steps of any part of this?

Here are some related questions:

1. What happens if you adjust the APR to 18%?
2. How does the monthly payment change with a 2-year payment plan?
3. How much interest would you save by making double monthly payments?
4. How would a 6-month repayment period affect the total interest?
5. What if the balance was $5000 instead of $2900?

Tip: If you're looking to reduce interest, paying more than the minimum payment can save you significant amounts over time!