Monthly loan payment on a $7,500 loan for 3 years with a 6.75% interest rate

Given:
Loan Amount: $7,500
Loan Terms: 3 years = 36 months = n  (convert years to months)
Interest Rate: 6.75% =
6.75/100
= 0.0675 = r  (convert percent to a decimal)
Monthly Loan Payment Formula:
Monthly Loan Payment =  
Loan Amount  * 
r / 12
/ 1 – ( 1+
r/12
 ) -n

Substitute given values into Monthly Payment Formula:
Monthly Loan Payment =  
7,500  * 
0.0675 / 12
/ 1 – ( 1+
0.0675/12
 ) -36

Monthly Loan Payment =  $230.72  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $230.72 * 36 =  $8,305.92
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $8,305.92 – $7,500 =  $805.92

The solution above and other related solutions were provided by the Monthly Loan Payment Application. 

Monthly Loan Payment

Related Glossary Terms

Related Applications

Related Solutions