Solve. -Determine How Much of the Total Loan Payment Applies Toward

Multiple Choice

Solve.
-Determine how much of the total loan payment applies toward principal and how much applies toward interest for a student loan of $61,811 at a fixed APR of 5% for 12 years.

A) $61,811 pays off the principal and $20,493.66 represents interest payments.
B) $61,811 pays off the principal and $20,536.46 represents interest payments.
C) $61,811 pays off the principal and $20,511.50 represents interest payments.
D) $61,811 pays off the principal and $20,573.89 represents interest payments.