Calculate Monthly Loan Payments

For an online calculator, see: http://matrixlab-examples.com/calculate-monthly-loan-payments.html

To download the presentation, go to: http://www.slideshare.net/matrixlab/calc-monthloanpayments

How to calculate Monthly Loan Payments -- Business Math

This formula calculates the amount required as regular payment in order to pay back a loan over a specified period of time. The payments will be equal.

You must provide: the amount of the principal, the annual interest rate, the number of payments per year, and the number of years to pay.

P = principal, i = annual interest rate, N = number of payments per year, Y = number of years, R = regular payments

This is an example... what must you pay on a loan of $40,000 at 8% if payments are to be made every month for 10 years?

There's an online calculator for this purpose. Regular payment calculations are found very easily.

Thank you for watching!