By Admin on Oct 24, 2009 in Renting & Real Estate
Ross R asked:
So I have a Business Analyst BAII Plus, Texas Instruments calculator and I want to know how to figure out the payments on a loan. I know how long payments will be made, interest rate, amortization (years), and loan amount. Can anyone tell me how to calculate this using my calculator, or any websites that can tell me. Thanks!
So I have a Business Analyst BAII Plus, Texas Instruments calculator and I want to know how to figure out the payments on a loan. I know how long payments will be made, interest rate, amortization (years), and loan amount. Can anyone tell me how to calculate this using my calculator, or any websites that can tell me. Thanks!
P = Payment
i = Interest
N = Number of payments
A = Loan Amount
P = (i * A) / (1 – ( 1 + i) ^ -N)
So if you borrowed 20000 for 36 months at 5% or .05 / 12 about .0042 interest per month interest
P= (.0042 * 20000) / (1 – (1 + .0042) ^-36)
One Tusk | Oct 30, 2009 | Reply