SOLUTION: A loan of $1000 is for 1 year, 3 months, at 6% interest per year. Determine interest and monthly payment. 1 year, 3 months = 15 months. 6/15 = 0.4% per month. Not sure ho

Question 1119158: A loan of $1000 is for 1 year, 3 months, at 6% interest per year. Determine interest and monthly payment.
1 year, 3 months = 15 months.
6/15 = 0.4% per month.
Not sure how to proceed. Non-homework.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
loan is for 1 year 3 months at 6% interest per year.

if the loan is a flat rate loan, then do the following:

principal = 1500.
interest rate = 6% per year = .06 / 12 = .005 per month.
number of months = 15.

formula is i = p * r * n

p is the principal.
r is the interest rate per time period.
n is the number of time periods.

formula becomes i = 1500 * .005 * 15.

solve for i to get i = 112.5.

add the principal to get p + i = 1612.5.

divide by 15 months to get monthly payment = 107.5.

if the loan is a compound interest loan, then use the following calculator.

https://arachnoid.com/finance/

results are shown below:

inputs are everything except payment amount.
click on PMT and the calculator tells you the monthly payment.

inputs are:

present value = 1500.
future value = 0
interest rate percent = 6/12 = .5% per momth.
number of months = 15
payment is made at end of each month.

output is monthly payment = 104.05 payable at the end of each month.

$$$

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