What would the interest be each month on $200,000 loan, with 7% interest, paid over 4 years?

Answer 1

Note: 1167 described before would have been ok without the restriction of the number of years!!!! For that reason this is the correct answer...

If the 7% is the interest each year, then you have to find interest per month which would be:
0.07/12= .005833 or 0.5833%


If it is for 4 years then
by the last year you would have to return 200 000 * (1.07)^4
= $ 262 159.202

So if you want to find the payment per month lets work it this way (using the interest calculated per month)

Finding the value Q for each month since you know the final value would be the payment calculated and n= 4*12=48 (using months)

Fv = Q * (((1 + i)^n - 1) / i)
Q= 262 159.202 (.005833) / (1.005833)^47
Q=1163.4313

Answer 2

The % would be $1167 the first month progressively declining to $0 with a monthly average of $583 . . .
I think
Note: you would need to make an additional principal payment averaging $4167 per month for a monthly total of $4750.

Answer 3

The length of the repayment period affects the monthly repayments but not the monthly interest which is what you are asking. Theses will be: $1130.83pm

The repayments however, will be $4769.32 pm
I hope you are the lender and not the borrower!

Note. I have calculated these figures using the mathematically correct formulae, but financial institutions often use their own peculiar formulae which they do not publish and which are only approximately correct. I think it is time they were stopped.

Answer 4

1163.4313