Monthly loan payment on a $5,250 loan for 18 months with a 3.75% interest rate

Given:
Loan Amount: $5,250
Loan Terms: 18 months = n
Interest Rate: 3.75% =
3.75/100
= 0.0375 = 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 =  
5,250  * 
0.0375 / 12
/ 1 – ( 1+
0.0375/12
 ) -18

Monthly Loan Payment =  $300.40  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $300.40 * 18 =  $5,407.20
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $5,407.20 – $5,250 =  $157.20

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

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