Monthly loan payment on a $6,000 loan for 6 months with a 8.99% interest rate

Given:
Loan Amount: $6,000
Loan Terms: 6 months = n
Interest Rate: 8.99% =
8.99/100
= 0.0899 = 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 =  
6,000  * 
0.0899 / 12
/ 1 – ( 1+
0.0899/12
 ) -6

Monthly Loan Payment =  $1,026.38  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $1,026.38 * 6 =  $6,158.28
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $6,158.28 – $6,000 =  $158.28

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

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