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?
You're missing a key component. How many months worth of payments????
For around $205 a month, the payments would be for six years at 1% imterest. Not my figures...I had to ask, too! LOL
Payments would be $205.12 for 60 months (5 years).
Is the interest simple interest ($12000 x 1% = $12120 owed) or compound interest (1% added to the monthly balance once the payment is made)?
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!
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!
That should be amortization--sorry!
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