Is there a way to find my interest rate if i have the loan amount, length, payment?

Question

The loan amount is $2900.00
The loan Length is 24 months
The loan Payment is $142.00

Answer 1

Your interest rate is 16%. Assuming your loan is amortized. Go to http://www.bankrate.com/brm/popcalc2.asp

You just have to plug & chug to get the correct interest rate to equal your monthly payment.

Answer 2

Interest = principal x rate x time. (x=multiplication.)
Multiply your payment amount $142.00 X 24 months which tells you how much your total loan will be with interest = $3,408. $3,408 minus $2900.00 = the amount of interest you will have paid over 24 months ($508). Divide $508 by $2900 and you get Approximately 17.5% (.175) Since your payments are monthly, you would have to divide 17.5% by 24 or .00730. Check your answer by plugging in the figures:

Interest $508.00=Principal $2900 x Rate.00730 X time 24 months. The answer should be $508.08 close enough for government work or banker's profits.

Your annual interest rate would be .00730 x 12 or .0876 or 8.76%

There is a much quicker way to do this, but I was hoping that by showing you the work, you would understand it better.

Answer 3

I work for a car dealership and have access to our computer program that we use for doing deals. After entering $2,900.00 for 24 months assuming your first payment was due in 30-days, your rate is 16.01%.

Answer 4

if you know all that how could you not know the interest rate?