Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan To estimate the required monthly payment amount for an installment loan, divide the amount to be barrowed by 1 , 000 and multiply the result by the appropriate figure from the table. Suppose that you are repaying a debt-consolidation loan in the amount of $26,000. The rate of interest on the loan is 16%, and you have agreed to pay back the loan in 12 monthly payments Using the values in the preceding table, compiete the foliowing steps to calculate the required monthly payment amount for this ioan. Step 1; Divide the amount of the loan by 1,000. Dividing $26,000 (loan amount) by 1,000 gives you a value of Step 2: Use the rate of interest and the number of monthly payments to identify the appropriate figure to use from the table; In this case, the rate of. interest is 16%, and the ioan requires 12 manthly payments. Therefore, the relevant amount from the table is $ Step 3: Multiply your answer from Step 1 by the appropriate value from the table cell (from Step 2). This gives your a required mortihly payment amount of $ Calcufate your total patyments and finance charge by completing the following table. (Wote: Enter au figures as positive numbers to tivo decimar ataces.) Total Payments 5 Loan Amount $26,000,00 Finance charge 1 Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan To estimate the required monthly payment amount for an installment loan, divide the amount to be barrowed by 1 , 000 and multiply the result by the appropriate figure from the table. Suppose that you are repaying a debt-consolidation loan in the amount of $26,000. The rate of interest on the loan is 16%, and you have agreed to pay back the loan in 12 monthly payments Using the values in the preceding table, compiete the foliowing steps to calculate the required monthly payment amount for this ioan. Step 1; Divide the amount of the loan by 1,000. Dividing $26,000 (loan amount) by 1,000 gives you a value of Step 2: Use the rate of interest and the number of monthly payments to identify the appropriate figure to use from the table; In this case, the rate of. interest is 16%, and the ioan requires 12 manthly payments. Therefore, the relevant amount from the table is $ Step 3: Multiply your answer from Step 1 by the appropriate value from the table cell (from Step 2). This gives your a required mortihly payment amount of $ Calcufate your total patyments and finance charge by completing the following table. (Wote: Enter au figures as positive numbers to tivo decimar ataces.) Total Payments 5 Loan Amount $26,000,00 Finance charge 1
