interest calculation question

susan_onAugust 5, 2012

I am not very good at math at all, but I have a math question related to calculating interest on a loan.

If someone is borrowing $12,000; and plans to pay it back at approx $200 a month, plus 1% interest... how much would the payments be?

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redcurls

You're missing a key component. How many months worth of payments????

    Bookmark   August 5, 2012 at 6:55PM
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redcurls

For around $205 a month, the payments would be for six years at 1% imterest. Not my figures...I had to ask, too! LOL

    Bookmark   August 5, 2012 at 7:02PM
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wildchild

Payments would be $205.12 for 60 months (5 years).

    Bookmark   August 5, 2012 at 7:29PM
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nelles_gw

Is the interest simple interest ($12000 x 1% = $12120 owed) or compound interest (1% added to the monthly balance once the payment is made)?

Ellen

    Bookmark   August 5, 2012 at 7:34PM
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susan_on

Whatever is in the best interest of the person I'm loaning it to...

It looks like I'll go with the $205 for 60 months. Thanks ladies!

    Bookmark   August 5, 2012 at 7:36PM
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patti43

Susan, you can find amortizstion schedules on-line that you can print out for you and the person you are lending to. It shows month-to-month the exact amount left on the loan, should the person decided to pay it off early.

Just google it--there are different ones. Just put in your information, then scroll down to the schedule. Pretty nifty!

    Bookmark   August 6, 2012 at 10:54AM
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patti43

That should be amortization--sorry!

    Bookmark   August 6, 2012 at 10:55AM
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kacram

well, look what the cat drug in! Long time no see on the
KT! IT's about time! lol Oh, I thought you were

GIVING me the money! lol

    Bookmark   August 6, 2012 at 12:51PM
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