Concept explainers
Monthly Payments
The monthly payment on a loan may be calculated by the following formula:
• Rate is the monthly interest rate, which is the annual interest rate divided by 12.
(A 12 percent annual interest would be 1 percent monthly interest.)
• N is the number of payments
• L is the amount of the loan.
Write a
Loan Amount: $ 10000.00
Monthly Interest Rate: 1%
Number of Payment s: 36
Monthly Payment: $ 332 .14
Amount Paid Back: $ 11957 .15
Interest Paid: $ 1957. 15
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