The monthly loan payment on a 3000 at a 5 percent annual interest rate for six months will be 500 1250 or 51250. Enter the interest payment formula. A loan by definition is an annuity in that it consists of a series of future periodic payments.
The monthly interest rate is 0583 percent.
To accomplish this divide your APR by 12 the number of months in a year. If you make weekly monthly or quarterly payments divide the annual rate by the number of payment periods per year as shown in this example. The rate argument is the interest rate per period for the loan. The Monthly compounded Interest Formula can be calculated as.