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: [tex]\frac{311}{1061}[/tex] 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 [tex]\times[/tex] 12 months [tex]\times[/tex]  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 = [tex]\frac{\text { interest paid }}{\text { total loan payments }}[/tex][tex]=\frac{55980}{190980}=\frac{311}{1061}[/tex]Hence [tex]\frac{311}{1061}[/tex] th proportion of the total loan payments Maria makes goes to interest