Monthly loan payment on a $5,000 loan for 8 months with a 6.99% interest rate

Given:
Loan Amount: $5,000
Loan Terms: 8 months = n
Interest Rate: 6.99% =
6.99/100
= 0.0699 = 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 =  
5,000  * 
0.0699 / 12
/ 1 – ( 1+
0.0699/12
 ) -8

Monthly Loan Payment =  $641.49  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $641.49 * 8 =  $5,131.92
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $5,131.92 – $5,000 =  $131.92

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

Monthly Loan Payment

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