Thread: Calculating monthly repayments (deferment)

I have a problem when I try to calculate monthly repayments on loans. I use the formula:
K0 * i*(1+i)^n
-----------
(1+i)^n -1

The problem is that my calculations are slightly higher than those on the banks and comparison sites'.

ie. K0=7500, i=8.9%, n=48

With those values I get a monthly repayment on 186.28

The banks and comparison sites gets a value on 185.05

What is wrong with my formula?
And how do you calculate with deferment/payment holidays?

Thanks,

Hello, meier1985!

I have a problem when I try to calculate monthly repayments on loans.

I use the formula: . . . . . This is correct!

The problem is that my calculations are slightly higher than those on the bank sites.

i.e. .

With those values I get a monthly repayment of $186.28 . . . . So do I!

The bank sites get a value on $185.05 ??

What is wrong with my formula? . . . . Nothing!

As we say in The Corps, "Ya done good!"