How to calculate what i need to pay each month in a annuity type of loan?
Good or bad, how do get to the same number as the bank web calculator do with the following data:
Money loaned: 2 500 000
Interest: 3.5%
Effective interest: 3.6%
Fee (each payment): 50
Number of payments pr year: 12
Cost of establishment: 2000
Number of years: 25
How much i need to pay each payment: 12566 <- how did they figure this number?
This is not dollars, lol. Swedish kroner ;-)
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They use an amortization table like can be found Here. The Forumula is not that complex
where:
A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods
You will need to add 50 to the A to account for the payment fee amount though.
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