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Loan payment formula 2019-02-24
From Kenneth:

I have a question regarding the loan payment formula shown below.

Calculating the Payment Amount per Period
The formula for calculating the payment amount is shown below.

Simple Amortization Calculation Formula

A = P X r(1 + r)n over (1 + r)n - 1


A = payment Amount per period

P = initial Principal (loan amount)
r = interest rate per period

n = total number of payments or periods

Is this formula/calculation a condensed version of a longer calculation? I am curious to know how the (1 +r)n - 1 was developed from the longer calculation. For example, r(1 + r)n may have been (r + rn)n. The n's are exponents.

I thank you for whatever helpful explanation that may be provided.


Answered by Harley Weston.
A loan 2010-06-16
From melody:
LOAN: 1000
TERM: 2 years
INTEREST: 2% (per month)

what is he formula of solving this and what is the answer..

Answered by Robert Dawson.
A car loan 2009-05-06
From Cindy:
A person takes out a car loan in the amount of $11,170.00 @ 4.5% interest. The person makes 17 payments of $500.00, then for the 18th payment (this person 'finds' some $) and pays off the whole thing. How much was their last (18th) payment? How much overall did they pay in principle? and interest?

The person who made the initial loan then takes $11,156.25 and places it into a High Interest Savings Account @ 2.25% annually on Nov 18, 2003. How much is now in the High Interest Savings Account if no futher funds have been added to the account and no withdrawls have been made?

Thanks for your help with this. I have been trying on and off for 3 years to figure this out.


Answered by Robert Dawson.
$16000 at 7% per annum for six months 2008-05-21
From Delbert:
If my principal balance if $16000.00 and I paid 7% interest per annum but only kept the loan for 6 months How much interest would I owe after 6 months.
Answered by Harley Weston.
Total payments for a loan 2007-10-11
From Robin:
A person is going to arrange a loan at 3 mill. he will pay 150000 back each year , so it take 20 yrs. to finish. In addition he pays 5% interest of what is leaft each year. How do I find the sum-function which shows the total sum he have payed?
Answered by Stephen La Rocque.
Paying off a loan 2007-08-08
From Iona:
I borrowed $6000. 00 from a friend to pay school fee. He said I should not pay back any interest but pay $350.00 monthly after graduation. (1) Make an equation from the above (2) make a graph (3) what is the relationship between the months after graduation and the loan? (4) what is the horizontal and vertical intercept relate to the problem?
Answered by Stephen La Rocque.
Compound interest 2007-07-11
From Michelle:
Present Value of $1500 to be paid in Year 7, with an interest rate of 12%
Answered by Stephen La Rocque.
How much money can I borrow if I have $5 000 for a deposit? 2006-04-19
From Chris:
I have a sum of cash that I want to use as a deposit ($ 5 000) and a lender will lend me 65% of the purchase price. How do I calculate the maximum value I can borrow?
Answered by Stephen La Rocque.
A loan of $50,000 2005-12-14
From Fre:
A loan of $50,000 taken today is payable within five years.
a. determine the annual payments within to be made to repay the loan if interest is charged at a rate of 10% compounded annually
b. show the amortization schedule

Answered by Penny Nom.
Payment plus interest 2004-09-14
From Penny:
Brian wants to borrow some money from Margaret.
After three years he is to pay X back plus one interest sum of 25%. If he is pays back a total of $3800, what was the original sum borrowed?

Answered by Penny Nom.
Interest owing 2002-03-17
From Dean:
I am an investor. If I lend to someone on January 1, 1999, $1000 to be paid back interest at 2% per year (simple interest, ie not compounded), and on July 15, 1999, I lend the same person $1,500 more (total loan is now $2,500) but at 18%, and once again on October 15, 1999, I lend to the same person another $1,500, and the person pays me back the principle($4,000) and interest on January 1,2001: What is the total (principle plus interest) due me? The tougher question is: what was my blended rate of return on my total outlay of money? Is there a formula you can give me so that I can perform my own calculations?
Answered by Harley Weston.
Monthly payments 2001-06-12
From Anthony:
This question is base on my interest. I would like to know the formula for calculating this example: If you borrow $10,000 from a bank with an APR of 11.7% to be paid off in 5 years, what is your monthly payment?
Answered by Penny Nom.
Rule of 78 2000-03-22
From Dan Baumgarten:
Can you explain the rule of 78 and the reverse rule of 78? Thanks.
Answered by Claude Tardif.
Compound Interest 1999-07-01
From Kim Palmer:
In early 1997, my son borrowed $4831 at 7.5%. He has made 30 monthly payments of $130 each. He is now in a position to pay off the balance. What is his remaining principal?
Answered by Penny Nom.



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