Bu440 financial management ii directions: be sure to save an
Right Bank’s loan has an Annual Percentage Rate (APR) of 9.38%. The APR is the annual cost of borrowing money and includes not just the interest rate, but also any other fees or charges associated with the loan.
The monthly payment for a loan with Right Bank’s APR can be calculated using the following formula:
Monthly Payment = L[(1 + i)^n]/ [(1+i)^n – 1],
where L is the loan amount, i is the interest rate divided by 12 (the number of months in a year), and n is the number of payments. So, if we assume that a person borrows $10,000 over 5 years and uses Right Bank’s 9.38% EAR interest rate then their monthly payments would be $206.53.