# Math Help - % 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: 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. 2. ## Re: % payment loan 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.
$P({n},{p},{i}){ = }1000 (1-p+i)^n$

$P[2,.03,.01] = 960.40$

3. ## Re: % payment loan

Yepper Max; I was surprised at its simplicity.