Monthly loan payment on a $23,000 loan for 60 months with a 5.74% interest rate

Given:
Loan Amount: $23,000
Loan Terms: 60 months = n
Interest Rate: 5.74% =
5.74/100
= 0.0574 = 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  * 
0.0574 / 12
/ 1 – ( 1+
0.0574/12
 ) -60

Monthly Loan Payment =  $441.88  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $441.88 * 60 =  $26,512.80
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $26,512.80 – $23,000 =  $3,512.80

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

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