Originally Posted by
JacobE I'm actually using this formula
but nevermind about that.
Point is, the monthly payment is indeed 416,67 € (1/12 of 5000 €) with the whole interest (500 €) being paid with the last payment. But actually finding the x turned out to be too much of a challenge given my level of mathematics.
No idea why you'd use that formula! And this is the weirdest loan I've seen!
You're borrowing 4950 net.
You'll repay 416.67 for 11 months, then 916.67 as 12th and final payment.
For that to happen, the required rate is 18.5% annual compounded monthly.
That rate cannot be solved for directly: iteration (basically hit and miss!) required.
This is what the loan will "look like" in bank statement format:
Code:
MONTH PAYMENT INTEREST BALANCE
0 4950.00
1 -416.67 76.31 4609.64
2 -416.67 71.07 4269.04
...
11 -416.67 20.05 903.70
12 -916.67 12.97 .00