Help!!

Wilma · June 28, 2007, 05:49:03 PM

Would somebody give me the formula for figuring payments on $5000.00 at 5 per cent for 48 months? I can't seem to get my brain around it.

Marty Hunter · June 28, 2007, 06:43:38 PM

Wilma,
There really is not an easy formula to figure equal monthly payments. That is why I cheat. I have a financial calculator at work that gets things right, but if you want a rough method you can use the calculator feature on our web site.
Go to www.mybankcnb.com; click on the calculator feature; click on monthly payments; then fill in the blanks with principal, term, and rate. This is not going to be perfect because it is automatically going to assume 30 days to the first payment and no costs associated with the transaction.
By the way, it says the payment would be $115.15.
Marty

flo · June 28, 2007, 06:50:54 PM

from my high school days, (yes, Myrna, I remember) the formula was I=PRT

Wilma · June 28, 2007, 07:03:35 PM

And what do each of those letters stand for?

flo · June 28, 2007, 07:05:50 PM

Interest equals Principal times rate times time
I=PRT

flo · June 28, 2007, 07:14:45 PM

got to add to that a bit, altho this should probably be in the "good ole days" catagory. I was just sitting here thinking about my high school business class, and can see Mr. Maginnis standing in front of the class being ever so serious as he drilled formulas and information and figures into our otherwise occupied brains. Marty, suppose probably everything we learned back then is obsolete now, huh? Gosh, even electric adding machines were few and far between, much less calculators to do our figuring. We wouldn't have been allowed to use them anyhow, because it was a standing rule you showed every bit of how you went about getting your final answer IN LONG HAND.

Oh, the good old days..............

Wilma · June 28, 2007, 07:16:53 PM

Marty, I tried the site and was told it couldn't be displayed.

Flo, that figures the interest for one month. How do you figure the total monthly payment?

I am trying to set up a table like the one Marty mentioned that I can put in the principal, interest rate and number of payments and it gives me an amortization schedule. I had one in an old computer I have that is now at the back of a closet on the bottom and I really don't want to dig it out. Besides I am not sure I can still figure out how to find it. The table that is, not the computer.

Marty Hunter · June 28, 2007, 07:40:04 PM

Wilma,
I am not sure why it is not displaying. I just tried it again and it came up for me. Happily I got the same payment amount twice.
Figuring interest accrual is very simple. Principal times interest rate divided by 365 days in the year times days to payment. $5000 x .05 / 365 x 30 = $20.55 for the first month.
The harder part is calculating the payment that will be equal for 48 months. That is why I use a financial calculator.
I did go on line and search google on amortization schedule. The best one I found quick was the one at www.bankrate.com. It calculates the payments and then you can go on and it will allow you to print an amortization schedule of payments.
Marty

Wilma · June 28, 2007, 08:00:35 PM

OK, Marty, I tried it again and found it. I have added it to my favorites so I can find it again when I need it. It gave me the same amount it gave you. Thanks.

Dee Gee · June 28, 2007, 08:38:33 PM

If you have Microsoft Works on your computer there are functions in the spread sheet portion that will give you the answer also. It computes the payment to $115.1464679 so it gives the same answer as the bankrate.com has.