To calculate a loan payment, use the formula: Payment = (P x R) / (1 - (1 + R)^-N), where P is the principal amount, R is the interest rate per period, and N is the total number of periods.
What loan means?
A loan is a financial transaction in which a lender provides money or assets to a borrower, who agrees to repay the loan with interest over a set period of time.
What is periodic payment of a loan?
The periodic payment of a loan is the fixed amount of money that a borrower is required to pay back to the lender at regular intervals, such as monthly or quarterly, until the loan is fully repaid.
How to calculate loan interest?
To calculate loan interest, multiply the loan amount by the interest rate and the loan term, considering the appropriate time units and compounding frequency as specified in the loan agreement.
