​With this Calculus based multivariable formula, you can estimate the monthly payment installments on a loan, and by extension the total amount you pay by the end of the term

​Purpose

​Estimated Monthly Payments

​Formula

​P = Principal (starting) Amount

r = Interest Rate (converted to decimal form)

t = Time, in years​

​Some tips:

• Do numerator and denominator separately

• Be super careful entering into your calculator​

​Example 1

​Fun Fact

If you take the monthly payment, multiply it by 12, then multiply that by the number of years of the loan, that is your TOTAL amount you'll be repaying!

​

​$964.50 x 12 = $11,574 $11,574 x 20 = $231,480 Total Repaid

Some text here about the topic of discussion

​Example 2

​Example 3

​Once you've gotten all your notes copied, move on to the Practice Set for today...