7. Calculating an installment loan payment using simple interest Calculating the Loan Payment on a Simple-Interest Installment Loan Instaliment loens allow borrowers to repay the loan with periodic payments over time. They are more common than single-payment ioans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on instaliment loans may be computed using the simple interest method or the add-on method. For an installment loan using simple interest and equal payments throughout the life of the loan, a portion of each repayment is dedicated to the principal and a portion to the interest. Remember that interest is charged only on the outstanding balance. This means that as each payment is made, more of it is allocated to The following table lists t rates, The payment is th. ayment amounts required to repay $1,000 over various time frames and at various fixed-interest. the allocation between principal and interest is always Calculating the Loan Payment on a Simple-Interest Installment Loan Instaliment loans allow borrowers to repay the loan with periodic payments ovar time. They are more common than single-payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on instaliment loans may be computed using the simple interest method or the add-on method. For an instaliment loan using simple interest and equal payments throughout the llfe of the loan, a portion of each repayment is dodicatod to the principal and a portion to the interest. Remember that interest is charged only on the outstanding balance. This means that as each paytnent is made, more of it is allocated to The following table lists the monthly installment payment amounts required to repay $1,000 over varlous time frames and at various foxed-interest rates. The payment is the same each month, and the allocation between principal and interest is always