calculate the monthly payment for a student loan of $20934 at a fixed APR of 8% for 12 years
I will assume 8% to be compounded monthly. Use this formula to calculate the payment:
PV=P{[1 + R]^N - 1.[1 + R]^-N} R^-1
20,934 =P {[1 + 0.08/12]^(12*12) -1 x [1 + 0.08/12]^-(12*12) x (0.08/12)^-1}, solve for P.
20,934 =P x 92.3830538.... divide both sides by 92.3830538
P = $226.60 Your monthly payment.
