1. **Problem statement:** Calculate the monthly payment, total payment, and percentage breakdown of principal and interest for a $12500 loan at 12% APR over 20 years. 2. **Formula for monthly payment:** $$M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$ where $M$ is monthly payment, $P=12500$ is principal, $r$ is monthly interest rate, and $n$ is total number of payments. 3. **Calculate monthly interest rate and number of payments:** $$r = \frac{12\%}{12} = 0.01$$ $$n = 20 \times 12 = 240$$ 4. **Calculate monthly payment:** $$M = 12500 \times \frac{0.01(1+0.01)^{240}}{(1+0.01)^{240} - 1}$$ Calculate $(1+0.01)^{240}$: $$1.01^{240} \approx 10.935$$ 5. Substitute back: $$M = 12500 \times \frac{0.01 \times 10.935}{10.935 - 1} = 12500 \times \frac{0.10935}{9.935}$$ 6. Simplify fraction: $$\frac{0.10935}{9.935} \approx 0.01101$$ 7. Calculate monthly payment: $$M = 12500 \times 0.01101 = 137.625$$ Rounded to nearest cent: $$\boxed{137.63}$$ 8. **Calculate total payment over 20 years:** $$\text{Total} = M \times n = 137.63 \times 240 = 33031.20$$ 9. **Calculate percentages:** Principal paid = 12500 Interest paid = Total - Principal = 33031.20 - 12500 = 20531.20 10. Percentage toward principal: $$\frac{12500}{33031.20} \times 100 \approx 37.8\%$$ 11. Percentage toward interest: $$\frac{20531.20}{33031.20} \times 100 \approx 62.2\%$$ **Final answers:** - Monthly payment: $137.63$ - Total payment: $33031.20$ - Percentage principal: 37.8% - Percentage interest: 62.2%