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Part 1
Consider a student loan of ​$12 comma 500 at a fixed APR of 6​% for 20 years.
a. Calculate the monthly payment.
b. Determine the total amount paid over the term of the loan.
c. Of the total amount​ paid, what percentage is paid toward the principal and what percentage is paid for interest.
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Part 1
a. The monthly payment is ​$

89.55.
​(Do not round until the final answer. Then round to the nearest cent as​ needed.)
Part 2
b. The total payment over the term of the loan is ​$

enter your response here.
​(Round to the nearest cent as​ needed.)

We are given a student loan of $12,500 at a fixed APR of 6% for 20 years. Let's calculate each part of the question.

### Part a: Monthly Payment
The monthly payment is already given as **$89.55**.

### Part b: Total Amount Paid
To find the total amount paid over the term of the loan, we multiply the monthly payment by the number of months in 20 years:

\[
\text{Total amount paid} = \text{Monthly payment} \times \text{Number of months}
\]
\[
\text{Total amount paid} = 89.55 \times (20 \, \text{years} \times 12 \, \text{months/year}) = 89.55 \times 240
\]

Let me calculate that.

The total amount paid over the term of the loan is **$21,492.00**.

### Part c: Percentage Paid Toward Principal and Interest
Now, let's break down how much of the total payment goes toward the principal and interest.

- **Principal**: The original loan amount is **$12,500**.
- **Interest**: The interest paid is the difference between the total amount paid and the principal.

\[
\text{Interest paid} = \text{Total payment} - \text{Principal}
\]
\[
\text{Interest paid} = 21,492.00 - 12,500
\]

Once we find the interest, we calculate the percentage for both the principal and interest:

\[
\text{Percentage toward principal} = \left( \frac{\text{Principal}}{\text{Total payment}} \right) \times 100
\]
\[
\text{Percentage toward interest} = \left( \frac{\text{Interest paid}}{\text{Total payment}} \right) \times 100
\]

Let's calculate this now.

The breakdown is as follows:

- **Interest paid**: $8,992.00
- **Percentage toward principal**: 58.16%
- **Percentage toward interest**: 41.84%

### Summary:
- **Monthly payment**: $89.55
- **Total amount paid**: $21,492.00
- **Percentage toward principal**: 58.16%
- **Percentage toward interest**: 41.84%

Would you like more details on any part of this? Here are 5 related questions you might explore next:
1. How would the monthly payment change if the loan term were 15 years instead of 20?
2. What would be the new monthly payment if the APR increased to 8%?
3. How can the total interest paid be reduced over the same term?
4. What impact does making an extra payment each year have on the loan?
5. How is the loan amortization schedule calculated?

**Tip:** Making additional payments toward the principal can reduce the total interest paid over the life of the loan.

Consider a student loan of $12,500 at a fixed APR of 6% for 20 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.

Solve a student loan amortization problem with a $12,500 loan at a 6% APR for 20 years. Learn to calculate the monthly payment, total amount paid, and the percentage of payment toward principal and interest. Suitable for high school students (Grades 10-12).

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