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Math Help - Calculating monthly repayments (deferment)

  1. #1
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    Question 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,
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  2. #2
    Super Member

    Joined
    May 2006
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    Lexington, MA (USA)
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    Hello, meier1985!

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

    I use the formula: . \frac{K_o\cdot i \cdot(1+i)^n}{(1+i)^n - 1} . . . . This is correct!

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

    i.e. . K_o=7500,\;\; i=8.9\%,\;\; n=48

    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!"

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