First step, find the monthly payments.
Borrowed amount, P = 210000
Monthly interest, i = 0.045/12
Number of periods, n = 30*12=360
Monthly payment
[tex]A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}[/tex]
[tex]=\frac{210000(0.045/12*(1+0.045/12)^360)}{(1+0.045/12)^360-1}[/tex]
[tex]=1064.0392[/tex] [to the 1/100 of a cent]
2. Calculate interest accumulated over 60 months
[tex]I=210000((1+0.045/12)^{60}-1)[/tex]
[tex]=52877.12[/tex]
3. Calculate value of payments
[tex]F=\frac{A((1+i)^n-1)}{i}[/tex]
[tex]=\frac{1064.039150634359((1+0.045/12)^{60}-1)}{0.045/12}[/tex]
[tex]=71445.50[/tex] to the nearest cent
4. Calculate percentage of interest paid
A. as a fraction of future values
Percentage of interest
=52877.12/71445.50
=74.01%
As a fraction of total amounts paid
Percentage of interest
=52877.12/(60*1064.0392)
=52877.12/63842.35
=82.82%
