what is the monthly payment on a 69,000 loan with a 12% interest rate compounded monthly
To calculate the monthly payment on a loan, you can use the formula for calculating the monthly payment of an amortizing loan. The formula is as follows:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Loan amount
r = Monthly interest rate (annual interest rate divided by 12)
n = Number of payments (loan term in months)
In this case:
P = $69,000
r = 12% / 12 = 1% = 0.01
n = Unknown
To find the value of n, we need to know the loan term or the number of months for which the loan is taken. Once we know the loan term, we can substitute the values into the formula to calculate the monthly payment.
For example, let's assume the loan term is 60 months (5 years):
n = 60
Substituting the values into the formula:
M = $69,000 * (0.01 * (1 + 0.01)^60) / ((1 + 0.01)^60 - 1)
To calculate this, you can use a calculator or spreadsheet software like Excel.
By substituting the values, you will find that the monthly payment on a $69,000 loan with a 12% interest rate compounded monthly for a term of 60 months is approximately $1,536.71.