Question 1187677
simple interest formula is i = p * r * n
i is the interest
p is the principle
r is the interest rate per time period
n is the number of time periods.


if you want the future value of the loan, then the formula becomes:


f = p + p * r * n


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


note that the future value of the loan is the same as the maturity value of the loan.


the loan is 150,000.
the interest rate is 10.25% per year.
the term of the loan is 2 years.


the maturity value of the loan will be:


p + p * r * n = 150,000 + 150,000 * .1025 * 2 = 180,750.


if the loan is to be paid through monthly payments, then the monthly payments will be 180,750 / (2 * 12) = 7,531.25.


that's the maturity value of the loan divided by the number of months of the loan.