What will be my monthly loan payment?

Problem

On January 1st, 2004, you borrowed $1,000 which is to be paid of in 240 monthly installments starting on February 1st. Interest is at 8 % compounded annually.

What's your monthly payment?

Solution

Set up the following cash flow or open the "Loan - Payment" example in the Help examples folder.

Comment	Type	Occurs	Date	Amount	Occurrences	Change	Step
Loan	outflow	once	1-1-2004	1,000
Payment	unknown	monthly	2-1-2004	1	240	(no change)

Enter 8 into the rate field and select annual compounding.

Make sure that auto update is checked.

You'll find the anwser in the multiplication value field: 8.19.