Monthly loan payment on a $10,000 loan for 12 months with a 4.3% interest rate

Given:
Loan Amount: $10,000
Loan Terms: 12 months = n
Interest Rate: 4.3% =
4.3/100
= 0.043 = 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 =  
10,000  * 
0.043 / 12
/ 1 – ( 1+
0.043/12
 ) -12

Monthly Loan Payment =  $852.87  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $852.87 * 12 =  $10,234.44
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $10,234.44 – $10,000 =  $234.44

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

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