Question

How much interest is paid on a 52,000 loan if the monthly payments are 450.23 for 30 years?h of these equations shows how installment loans are calculated??

Answer 1

To find out the rate of the interest of the loan we will divide the amount paid by the amount of money borrowed and multiply the quotient with 100. Say,
450.23 ÷ 52, 000 = 0.008658
0.008658 × 100 is 0.87%
Therefore, the rate of interest is 0.87% per month.
If this loan is paid monthly within 30 years. The loaner would pay 162, 082.8 in 360 months or 30 years.