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Weekly Loan repayments

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davies2209 | 01:22 Tue 30th Jun 2009 | Business & Finance
4 Answers
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
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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
shouldnt you work all this out before you accept the loan?
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.
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

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