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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.
Splitting the mortgage payment 2010-04-09
From Jodi:
What percentage of $2,500.00 (monthly mortgage payment)would I pay per month - if I make $2,200.00 per month and my partner makes $6000.00 per month? Thank you.
Answered by Tyler Wood.
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.
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.
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.
Une réduction de 40% 2005-04-21
From Isabelle:
une famille composée de 3 enfants, et 2 adultes partent en expédition. ils payent au total 80€ sachant que les enfants bénéficient d'une réduction de 40% combien payent les parents et les enfants ?
Answered by Claude Tardif.



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