SOLUTION: I borrowed $22650 at 6.7% p.a. paid monthly over 12 quarters. Calculate how much my monthly instalments should be

Question 1123417: I borrowed $22650 at 6.7% p.a. paid monthly over 12 quarters. Calculate how much my monthly instalments should be
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
22650 is the present value
6.7% per year compounded monthly = .5583333333.....% per month.
12 quarters / 4 = 3 years * 12 = 36 months.

the loan is for 22,650 for 36 months at .55833333.....% per month.

payment is assumed to be at the end of each month.

the monthly payments need to be 696.26 per month.

you can use the following online financial calculator to do the calculations yourself.

https://arachnoid.com/finance/

your inputs would be:

present value = 22650 (positive because it's money you received).
future value = 0 (remaining balance must be 0 at end of loan period).
number of time periods = 12 quarters / 4 = 3 years * 12 months per year = 36 months.
payment amount = what you want to find.
percent interest per time period = 6.7% per year / 12 = .5833333....% per month.
paymnt is made at the end of each time period.

click on PMT and the calculator tells you that the monthly payment needs to be 696.20.
it is shown as negative since it's money you need to pay out at the end of each month.

a display of the calculator inputs and outputs is shown below:

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