Hi saziz. If you make constant monthly payments on the $10,000, at 7.5%
interest, the monthly payment will be $241.79. If you don't make constant
payments, your method will work, except $200 times 48 months is only $9,600.
You'll have to make 50 payments and will miss the 4-year deadline by 2
months. See the PMT function in Excel. HTH
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Sincerely, Michael Colvin


"saziz" wrote:


HI,
I just want to know if I am doing this correct.

I have calculated 7.5% interest on $10,000.00 to be paid in 4 years.
10K times .0075 divided by 12 for months. Which would be 62.50. then
I am adding $200.00 which is going for actual balance payment.
So next month it would be 9,800 times 7.5% divided by 12 months.
Is this correct?
Appreciate your help.
Thank you

Saziz


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saziz
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