# Thread: % payment loan

1. ## % 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.