+0  
 
0
249
1
avatar

A student loan for $10,000

Monthly payment $101.25

To be paid over 10 years or 120 months

Interest rate ??

Thanks for help.

 Nov 17, 2017
 #1
avatar
0

Use this fine online financial calculator: https://arachnoid.com/finance/

 

Enter $10,000 under "pv"

Enter monthly payment of -$101.25 under "pmt". Note that the "pmt" is entered as -$101.25 because it is money "paid out"

Enter 120 months under "np"

Press "ir"

You should get an answer of 0.333419, which the monthly interest rate.

Multiply it by 12 =0.333419 x 12 =4.001028 =~4% compounded monthly.

 Nov 17, 2017

9 Online Users

avatar
avatar