Calculate the monthly payment by loan amortization table

Loan $26,000
Down payment $5,000
11%
36 Months

To calculate the monthly payment using a loan amortization table, you can follow these steps:

Step 1: Determine the loan amount
The loan amount is the total cost of the item being financed minus the down payment. In this case, the loan amount would be $26,000 (total cost) - $5,000 (down payment) = $21,000.

Step 2: Calculate the monthly interest rate
The interest rate given is 11% annually. To get the monthly interest rate, divide it by 12. So, the monthly interest rate would be 11% / 12 = 0.92%.

Step 3: Determine the loan term
The loan term is the duration of the loan in months. In this case, it is given as 36 months.

Step 4: Use the loan amortization formula
The loan amortization formula is:
Monthly Payment = P x (r (1+r)^n) / ((1+r)^n - 1)

Where:
P = Loan amount
r = Monthly interest rate (as a decimal)
n = Total number of payments

Plugging in the values from steps 1-3, we get:
Monthly Payment = $21,000 x (0.0092 (1+0.0092)^36) / ((1+0.0092)^36 - 1)

By substituting and calculating this formula, the estimated monthly payment will be determined.