Math

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John Receive a 10,000 loan, with an interest rate of 6 %, for 6 years.

What is the loan's monthly payment amount?

  • Math -

    Pt = Po*r*t / (1-(1+r)^-t).

    r = (6% / 12) / 100% = 0.005 = Monthly
    % rate expressed as a decimal.

    t = 6yrs * 12mo/yr = 73monhs.

    Pt = 10000*0.005*72 / (1-(1.005)^-72) =
    Pt = $11932.50.

    Monthly Payment = Pt / t = 11932.50/72=
    $165.73/mo.

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