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Frequently Asked Questions

How do you calculate a bank loan?

Compute the total number of payments you have to make on your bank loan. Multiply the payments per year by the number of years you will take to repay the loan. For example, if you will repay your loan over three years, you would multiply three by 12 to get 36 payments.

How do you calculate loan rate?

Lenders provide you an annual rate so you’ll need to divide that figure by 12 (the number of months in a year) to get the monthly rate. n = number of payments over the loan’s lifetime. Multiply the number of years in your loan term by 12 (the number of months in a year) to get the number of payments for your loan.

How do you calculate interest rate on a mortgage loan?

To calculate how much interest you'll pay on a mortgage each month, you can use the monthly interest rate. Generally, you'll find this by dividing your annual interest rate by 12. Then, multiply this by the amount of principal outstanding on the loan.


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