What is the formula to get the monthly payment of a bank loan?
P= 8000
R= 4.50
n=12
time= 3
Use this formula:
PMT=PV. R.{[1 + R]^N / [1 + R]^N - 1}, Where R=Interest rate per period, N=number of periods, P=periodic payment, PV=Present value.
PMT =8,000 x 0.045/12 {[1 + 0.045/12]^(3*12) / [1+ 0.045/12]^(3*12) - 1}
PMT = 30 x 7.9325132.........
PMT = $237.98 - The monthly payment.
