Weekly Loan repayments

[davies2209]

Hello,

Please help me!

I am going to borrow $50,000 and repay over 208 weeks. This loan has a 7.97% reducible rate.

How much is my weekly repayment?

If you could show me the working out that'd be great.

Thanks,

Davies2209

[factor-fiction]

Just type Loan Repayment Calculator into Google.

A rough calculation is that average outstanding balance over the 4 year loan term will be $25,000.

At an interest rate of 8% pa for 4 years the overall interest repayment will be:
$25000 x0.0797 x 4 years= �7970

Add on the $50000 loan

Total to repay = $57970

Weekly repayment over 208 weeks= $57970/208 = $278.70

Likely to be right to within a couple of dollars per month

[cazzz1975]

shouldnt you work all this out before you accept the loan?

[dr b]

Sounds more like a homework question than a personal finance question.

Convert your annual interest rate into a weekly rate: 0.0797/52.

Find the present value factor for an annuity for 208 weeks at that rate.

Divide the loan amount by that number.

Chuck's rough calculation is indeed close.

[nazmul212]

In case of loan, you have to know loan repayment schedule and if you don't know how to calculate, it may be a great problem so you should know it. You have taken a fixed-interest loan, but because of the interest calculation you do not know the amount you still owe. This calculator was created to help with that scenario - it will tell you the exact loan balance outstanding. I learned all of this from global finance school. http://www.globalfinanceschool.com/calculator/loan-balance-calculator