Theo borrowed 4500 to purchase a computer. The flat rate interest rate was 3.75% p.a the loan was to be paid back in 24 monthly installments. calculate theos monthly repayments
Theo borrowed 4500 to purchase a computer. The flat rate interest rate was 3.75% p.a the loan was to be paid back in 24 monthly installments. calculate theos monthly repayments.
Use this formula to calculate the monthly payment.
PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}
PMT = 4,500 x 0.0375/12{[1 + 0.0375/12]^24 / [1 + 0.0375/12]^24 - 1}
PMT = 14.0625 x {[ 1.003125]^24 /[1.003125]^24 -1}
PMT = 14.0625 x 13.86039550.........
PMT = $194.91 - This is the monthly payment to pay off the loan in 24 months.
P.S. I have used your 3.75% as compounded monthly.
