% payment loan

As example, a $1,000.00 loan is repaid with monthly payments being 3% of balance owing;
with interest at 1% per month, this is what the loan looks like after 2 payments:

Code:

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N    PAYMENT  INTEREST    BALANCE
0                        1000.00
1      30.00    10.00    980.00
2      29.40      9.80    960.40

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a = amount borrowed
i = monthly interest rate (.01 in above)
m = minimum pay't rate (.03 in above)
n = number of payments made

Gimme a formula that gives balance owing after n payments.
In terms of a,i,m,n , of course.

Quote:

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Originally Posted by Wilmer

As example, a $1,000.00 loan is repaid with monthly payments being 3% of balance owing;
with interest at 1% per month, this is what the loan looks like after 2 payments:

Code:

---

N    PAYMENT  INTEREST    BALANCE
0                        1000.00
1      30.00    10.00    980.00
2      29.40      9.80    960.40

---

a = amount borrowed
i = monthly interest rate (.01 in above)
m = minimum pay't rate (.03 in above)
n = number of payments made

Gimme a formula that gives balance owing after n payments.
In terms of a,i,m,n , of course.

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Yepper Max; I was surprised at its simplicity.