Monthly loan payment on a $23,000 loan for 60 months with a 8.7% interest rate

Given:
Loan Amount: $23,000
Loan Terms: 60 months = n
Interest Rate: 8.7% =
8.7/100
= 0.087 = 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 =  
23,000  * 
0.087 / 12
/ 1 – ( 1+
0.087/12
 ) -60

Monthly Loan Payment =  $474.10  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $474.10 * 60 =  $28,446
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $28,446 – $23,000 =  $5,446

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

Monthly Loan Payment

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