Monthly loan payment on a $13,000 loan for 36 months with a 5.54% interest rate

Given:
Loan Amount: $13,000
Loan Terms: 36 months = n
Interest Rate: 5.54% =
5.54/100
= 0.0554 = 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 =  
13,000  * 
0.0554 / 12
/ 1 – ( 1+
0.0554/12
 ) -36

Monthly Loan Payment =  $392.78  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $392.78 * 36 =  $14,140.08
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $14,140.08 – $13,000 =  $1,140.08

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

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