Monthly loan payment on a $6,000 loan for 12 months with a 4.3% interest rate

Given:
Loan Amount: $6,000
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 =  
6,000  * 
0.043 / 12
/ 1 – ( 1+
0.043/12
 ) -12

Monthly Loan Payment =  $511.72  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $511.72 * 12 =  $6,140.64
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $6,140.64 – $6,000 =  $140.64

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

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