Need some help - Interest rates - loans

purelife · Apr 13 07 11:53

These are the scenarios:

$6,000 loan is taken out.

$215.97 is paid every month on a 4 year term

Another one:

$10,000 loan

$323.42 is paid every month on a 4 year term

Do these rates sound good? How is the interest? Does anyone know if this is a good deal or not?

Lil Me · Apr 13 07 12:03

I'm clearly still half asleep-
Assuming a 4 year term, compounded annually- the first scenario is about 17% interest.

UGH. Can't find the right button on my financial calculator.

purelife · Apr 13 07 12:05

17%? How did you work that out?

TehBorken · Apr 13 07 12:10

Lil Me wrote:
I'm clearly still half asleep-
Assuming a 4 year term, compounded annually- the first scenario is about 17% interest.
UGH. Can't find the right button on my financial calculator.

Go here: [a href="vny!://www.bankrate.com/brm/popcalc2.asp"]vny!://www.bankrate.com/brm/popcalc2.asp[/a]

Or here: [a href="vny!://mortgages.interest.com/content/calculators/index.asp"]vny!://mortgages.interest.com/content/calculators/index.asp[/a]

Lil Me · Apr 13 07 12:13

ah, TB...too easy. I'm still working on the manual calc with a pencil.

Lise · Apr 13 07 12:13

Neither. *hands over winning lottery ticket to purelife*

purelife · Apr 13 07 12:15

I went there as well (the links that TB put up - thanks) but I don't know how to calculate my interest.

This is all I have for sceneario one.

$215.97 X 48 (# of payments) = $10,366.56

So, $10, 366.56 minus $6,000 = $4,366.56

From there, I don't know how to calculate how much interest they are charging me. This bank is already making $4,366.56 in profit on this 4 year loan. I just wanted to know if this was a good rate?

ADD: The guy told me that it was based on a 2.49% interest rate but that doesn't sound right...

49er · Apr 13 07 12:20

you are paying 30% and 23% respectively

purelife · Apr 13 07 12:21

Hey 49er! How did you calculate that? (without aid of internet)

30% and 23%...these rates are wayyy too high! Geeshus, the guy told me something else.!

Lil Me · Apr 13 07 12:23

shhh! I was still working on it. I'm determined to finish this.,

49er · Apr 13 07 12:25

purelife wrote:
Hey 49er! How did you calculate that? (without aid of internet)[/DIV]
I would have to dig out my old engineering economy textbook to explain...........easier to go to one of the web aids (above) and plug in approx interest rates to come closest to your payment

[H1]Monthly Payment Calculator[/H1]

[TABLE class=tableChart cellSpacing=0 cellPadding=0 width=400 align=center border=0] [TBODY] [TR] [TD align=right height=52]Loan Amount:[/TD] [TD align=left bgColor=#eeeeee height=52] $ [INPUT maxLength=12 size=12 value=6000 name=loan][/TD][/TR] [TR] [TD align=right height=52]Interest Rate:[/TD] [TD align=left bgColor=#eeeeee height=52] [INPUT maxLength=12 size=12 value=30 name=interest] %[/TD][/TR] [TR] [TD align=right height=52]Term:[/TD] [TD align=left bgColor=#eeeeee height=52] [INPUT maxLength=2 size=2 value=4 name=term] years[/TD][/TR] [TR] [TD align=middle colSpan=2 height=52][INPUT class=button type=submit value=Calculate][/TD][/TR][/TBODY][/TABLE] [TABLE style="BORDER-RIGHT: #cccccc 1px solid; BORDER-TOP: #cccccc 1px solid; BORDER-LEFT: #cccccc 1px solid; BORDER-BOTTOM: #cccccc 1px solid" cellSpacing=0 cellPadding=0 width=400 align=center border=0] [TBODY] [TR] [TD style="PADDING-RIGHT: 10px; PADDING-LEFT: 10px; PADDING-BOTTOM: 10px; PADDING-TOP: 10px" align=right width="48%" bgColor=#eeeeee]Monthly Payment: [/TD] [TD style="PADDING-RIGHT: 10px; PADDING-LEFT: 10px; PADDING-BOTTOM: 10px; PADDING-TOP: 10px" align=middle width="52%" bgColor=#eeeeee][FONT size=+1]$216.04[/FONT][/TD][/TR][/TBODY][/TABLE]
[!-- the search rates and preapp buttons --] [DIV class=mboxDefault style="DISPLAY: block; VISIBILITY: visible"] [P align=center][A class=button href="vny!://www.eloan.com/s/show/quoteinput?sid=Jla_GflFmNy8mkj2uyAAtC0vbvc&user=&mcode="]Search Rates[/A] [A class=button href="vny!://www.eloan.com/loanadvisor/input1?sid=Jla_GflFmNy8mkj2uyAAtC0vbvc&user=&mcode="]Apply Now[/A]

[SCRIPT language=DOH!script1.2] mboxCreate('calc_payment_buttons','user=','mcode=','sid=Jla_GflFmNy8mkj2uyAAtC0vbvc'); [/SCRIPT] [DIV id=mboxMarker-calc_payment_buttons style="DISPLAY: none; VISIBILITY: hidden"] [SCRIPT language=DOH!Script]mboxs["calc_payment_buttons"].startTimeout(15000);[/SCRIPT] [SCRIPT language=DOH!Script src="vny!://mbox4.offermatica.com/m2/eloan/mbox/standard?mbox=calc_payment_buttons&user=&mcode=&sid=Jla_GflFmNy8mkj2uyAAtC0vbvc&mboxCount=1&mboxHost=www.eloan.com&mboxSession=1176490547562-163900&mboxPC=1170807393015-885986&mboxPage=1176492441296-768280&mboxXDomain=enabled&mboxURL=vny!%3A//www.eloan.com/s/payment%3Fsid%3DJla_GflFmNy8mkj2uyAAtC0vbvc%26user%3D%26mcode%3D&mboxReferrer=vny!%3A//www.eloan.com/s/payment/calc_payment%3Fsid%3DJla_GflFmNy8mkj2uyAAtC0vbvc%26user%3D%26mcode%3D&mboxVersion=23"][/SCRIPT]

[DIV style="DISPLAY: none; VISIBILITY: hidden"][i-frame src="jvascript:false;" width=0 on-load="mboxActivateById('calc_payment_buttons')" height=0][/i-frame]

[P align=center]These calculations are estimates and are not guaranteed for any particular loan.

purelife · Apr 13 07 12:26

Are these rates normal, 49er?

purelife · Apr 13 07 12:27

I plugged in that 30% interest rate but got a monthly amount of something totally different:

[TABLE cellSpacing=0 cellPadding=0 width="100%" bgColor=#dadfe4 border=0] [FORM name=Calculator action="" method=get target=_self] [TBODY] [TR] [TD align=left colSpan=2] [TABLE cellSpacing=0 cellPadding=0 width="100%" border=0] [TBODY] [TR] [TD class=compare_rates_form_text_small vAlign=center align=left bgColor=#4b76a2 height=20][FONT face="Verdana, Arial, Helvetica, sans-serif" color=#ffffff size=2]Loan calculator and amortization[/FONT] [/TD][/TR][/TBODY][/TABLE][/TD][/TR] [TR bgColor=#dadfe4] [TD bgColor=#dadfe4 colSpan=2] [TABLE cellSpacing=5 cellPadding=0 width="100%" border=0] [TBODY] [TR] [TD align=left width="38%"]Loan amount[/TD] [TD align=left width="62%"]$ [INPUT onchange=amort.clearPayment(); size=9 value=6000.00 name=loanAmount] [INPUT onclick=helpText(this) type=button value=" ? " name=loanAmountHelp] (Do not use commas.)[/TD][/TR] [TR] [TD align=left width="38%"]Loan term in years or months [/TD] [TD align=left width="62%"] [INPUT onchange="this.form.nrOfMonths.value = Math.round(12 * parseFloat(this.value)); amort.clearPayment();" size=4 value=6.00 name=nrOfYears] [INPUT onclick=helpText(this) type=button value=" ? " name=nrOfYearsHelp] years or [INPUT onchange="this.form.nrOfYears.value = parseFloat(this.value) / 12; amort.clearPayment();" size=3 value=72 name=nrOfMonths] months[/TD][/TR] [TR] [TD align=left width="38%"]Interest rate [SPAN class=body-bold]*[/SPAN][/TD] [TD noWrap width="62%"] [INPUT onchange=amort.clearPayment(); size=4 value=30.00 name=interestRate] [INPUT onclick=helpText(this) type=button value=" ? " name=interestRateHelp] % per year [/TD][/TR] [TR align=left] [TD class=body-bold noWrap colSpan=2]* Find the [A href="vny!://www.bankrate.com/brm/rate/brm_loansearch.asp?groupid=79"]best interest rates in your area[/A] for more personalized results.[/TD][/TR] [TR] [TD align=left width="38%"]Loan start date [/TD] [TD noWrap width="62%"] [SCRIPT language=DOH!Script] document.write(dateSelector('start')); [/SCRIPT] [SELECT onchange=amort.clearPayment(); name=startMonth] [OPTION value=0]Jan[/OPTION] [OPTION value=1]Feb[/OPTION] [OPTION value=2]Mar[/OPTION] [OPTION value=3 selected]Apr[/OPTION] [OPTION value=4]May[/OPTION] [OPTION value=5]Jun[/OPTION] [OPTION value=6]Jul[/OPTION] [OPTION value=7]Aug[/OPTION] [OPTION value=8]Sep[/OPTION] [OPTION value=9]Oct[/OPTION] [OPTION value=10]Nov[/OPTION] [OPTION value=11]Dec[/OPTION][/SELECT] [SELECT onchange=amort.clearPayment(); name=startDay] [OPTION value=1]1[/OPTION] [OPTION value=2]2[/OPTION] [OPTION value=3]3[/OPTION] [OPTION value=4]4[/OPTION] [OPTION value=5]5[/OPTION] [OPTION value=6]6[/OPTION] [OPTION value=7]7[/OPTION] [OPTION value=8]8[/OPTION] [OPTION value=9]9[/OPTION] [OPTION value=10]10[/OPTION] [OPTION value=11]11[/OPTION] [OPTION value=12]12[/OPTION] [OPTION value=13 selected]13[/OPTION] [OPTION value=14]14[/OPTION] [OPTION value=15]15[/OPTION] [OPTION value=16]16[/OPTION] [OPTION value=17]17[/OPTION] [OPTION value=18]18[/OPTION] [OPTION value=19]19[/OPTION] [OPTION value=20]20[/OPTION] [OPTION value=21]21[/OPTION] [OPTION value=22]22[/OPTION] [OPTION value=23]23[/OPTION] [OPTION value=24]24[/OPTION] [OPTION value=25]25[/OPTION] [OPTION value=26]26[/OPTION] [OPTION value=27]27[/OPTION] [OPTION value=28]28[/OPTION] [OPTION value=29]29[/OPTION] [OPTION value=30]30[/OPTION] [OPTION value=31]31[/OPTION][/SELECT], [SELECT onchange=amort.clearPayment(); name=startYear] [OPTION value=1985]1985[/OPTION] [OPTION value=1986]1986[/OPTION] [OPTION value=1987]1987[/OPTION] [OPTION value=1988]1988[/OPTION] [OPTION value=1989]1989[/OPTION] [OPTION value=1990]1990[/OPTION] [OPTION value=1991]1991[/OPTION] [OPTION value=1992]1992[/OPTION] [OPTION value=1993]1993[/OPTION] [OPTION value=1994]1994[/OPTION] [OPTION value=1995]1995[/OPTION] [OPTION value=1996]1996[/OPTION] [OPTION value=1997]1997[/OPTION] [OPTION value=1998]1998[/OPTION] [OPTION value=1999]1999[/OPTION] [OPTION value=2000]2000[/OPTION] [OPTION value=2001]2001[/OPTION] [OPTION value=2002]2002[/OPTION] [OPTION value=2003]2003[/OPTION] [OPTION value=2004]2004[/OPTION] [OPTION value=2005]2005[/OPTION] [OPTION value=2006]2006[/OPTION] [OPTION value=2007 selected]2007[/OPTION] [OPTION value=2008]2008[/OPTION] [OPTION value=2009]2009[/OPTION] [OPTION value=2010]2010[/OPTION] [OPTION value=2011]2011[/OPTION] [OPTION value=2012]2012[/OPTION] [OPTION value=2013]2013[/OPTION] [OPTION value=2014]2014[/OPTION] [OPTION value=2015]2015[/OPTION] [OPTION value=2016]2016[/OPTION] [OPTION value=2017]2017[/OPTION][/SELECT] [/TD][/TR] [TR] [TD width="38%"] [DIV align=center][INPUT class=imgover onclick="amort.doAmortization('form')" type=image height=16 width=75 src="vny!://www.bankrate.com/images_MRA/buttons/calculatebutton.gif" value=Calculate border=0 name=Submit] [/DIV][/TD] [TD vAlign=top width="62%"] [DIV align=left]Monthly Payments: $ [INPUT size=6 value=180.50 name=monthlyPayment] [INPUT onclick=helpText(this) type=button value=" ? " name=monthlyPaymentHelp] [/DIV][/TD][/TR] [TR] [TD align=middle colSpan=2][INPUT type=submit value="Show/Recalculate Amortization Table" name=showAmort] [INPUT onclick=helpText(this) type=button value=" ? " name=amortizationHelp] [/TD][/TR][/TBODY][/TABLE][/TD][/TR][/TBODY][/FORM][/TABLE]

49er · Apr 13 07 12:36

[!--start calculator--] [TABLE cellSpacing=0 cellPadding=0 width="100%" bgColor=#dadfe4 border=0] [FORM name=Calculator action="" method=get target=_self][INPUT type=hidden value=216.0359627425312 name=unroundedPayment] [TBODY] [TR] [TD align=left colSpan=2] [TABLE cellSpacing=0 cellPadding=0 width="100%" border=0] [TBODY] [TR] [TD class=compare_rates_form_text_small vAlign=center align=left bgColor=#4b76a2 height=20] [FONT face="Verdana, Arial, Helvetica, sans-serif" color=#ffffff size=2]Loan calculator and amortization[/FONT] [/TD][/TR][/TBODY][/TABLE][/TD][/TR] [TR bgColor=#dadfe4] [TD bgColor=#dadfe4 colSpan=2] [TABLE cellSpacing=5 cellPadding=0 width="100%" border=0] [TBODY] [TR] [TD align=left width="38%"]Loan amount[/TD] [TD align=left width="62%"]$ [INPUT onchange=amort.clearPayment(); size=9 value=6000.00 name=loanAmount] [INPUT onclick=helpText(this) type=button value=" ? " name=loanAmountHelp] (Do not use commas.)[/TD][/TR] [TR] [TD align=left width="38%"]Loan term in years or months [/TD] [TD align=left width="62%"] [INPUT onchange="this.form.nrOfMonths.value = Math.round(12 * parseFloat(this.value)); amort.clearPayment();" size=4 value=4.00 name=nrOfYears] [INPUT onclick=helpText(this) type=button value=" ? " name=nrOfYearsHelp] years or [INPUT onchange="this.form.nrOfYears.value = parseFloat(this.value) / 12; amort.clearPayment();" size=3 value=48 name=nrOfMonths] months[/TD][/TR] [TR] [TD align=left width="38%"]Interest rate [SPAN class=body-bold]*[/SPAN][/TD] [TD noWrap width="62%"] [INPUT onchange=amort.clearPayment(); size=4 value=30.00 name=interestRate] [INPUT onclick=helpText(this) type=button value=" ? " name=interestRateHelp] % per year [/TD][/TR] [TR align=left] [TD class=body-bold noWrap colSpan=2]* Find the [A href="vny!://www.bankrate.com/brm/rate/brm_loansearch.asp?groupid=79"]best interest rates in your area[/A] for more personalized results.[/TD][/TR] [TR] [TD align=left width="38%"]Loan start date [/TD] [TD noWrap width="62%"] [SCRIPT language=DOH!Script] document.write(dateSelector('start')); [/SCRIPT] [SELECT onchange=amort.clearPayment(); name=startMonth] [OPTION value=0]Jan[/OPTION] [OPTION value=1]Feb[/OPTION] [OPTION value=2]Mar[/OPTION] [OPTION value=3 selected]Apr[/OPTION] [OPTION value=4]May[/OPTION] [OPTION value=5]Jun[/OPTION] [OPTION value=6]Jul[/OPTION] [OPTION value=7]Aug[/OPTION] [OPTION value=8]Sep[/OPTION] [OPTION value=9]Oct[/OPTION] [OPTION value=10]Nov[/OPTION] [OPTION value=11]Dec[/OPTION][/SELECT] [SELECT onchange=amort.clearPayment(); name=startDay] [OPTION value=1]1[/OPTION] [OPTION value=2]2[/OPTION] [OPTION value=3]3[/OPTION] [OPTION value=4]4[/OPTION] [OPTION value=5]5[/OPTION] [OPTION value=6]6[/OPTION] [OPTION value=7]7[/OPTION] [OPTION value=8]8[/OPTION] [OPTION value=9]9[/OPTION] [OPTION value=10]10[/OPTION] [OPTION value=11]11[/OPTION] [OPTION value=12]12[/OPTION] [OPTION value=13 selected]13[/OPTION] [OPTION value=14]14[/OPTION] [OPTION value=15]15[/OPTION] [OPTION value=16]16[/OPTION] [OPTION value=17]17[/OPTION] [OPTION value=18]18[/OPTION] [OPTION value=19]19[/OPTION] [OPTION value=20]20[/OPTION] [OPTION value=21]21[/OPTION] [OPTION value=22]22[/OPTION] [OPTION value=23]23[/OPTION] [OPTION value=24]24[/OPTION] [OPTION value=25]25[/OPTION] [OPTION value=26]26[/OPTION] [OPTION value=27]27[/OPTION] [OPTION value=28]28[/OPTION] [OPTION value=29]29[/OPTION] [OPTION value=30]30[/OPTION] [OPTION value=31]31[/OPTION][/SELECT], [SELECT onchange=amort.clearPayment(); name=startYear] [OPTION value=1985]1985[/OPTION] [OPTION value=1986]1986[/OPTION] [OPTION value=1987]1987[/OPTION] [OPTION value=1988]1988[/OPTION] [OPTION value=1989]1989[/OPTION] [OPTION value=1990]1990[/OPTION] [OPTION value=1991]1991[/OPTION] [OPTION value=1992]1992[/OPTION] [OPTION value=1993]1993[/OPTION] [OPTION value=1994]1994[/OPTION] [OPTION value=1995]1995[/OPTION] [OPTION value=1996]1996[/OPTION] [OPTION value=1997]1997[/OPTION] [OPTION value=1998]1998[/OPTION] [OPTION value=1999]1999[/OPTION] [OPTION value=2000]2000[/OPTION] [OPTION value=2001]2001[/OPTION] [OPTION value=2002]2002[/OPTION] [OPTION value=2003]2003[/OPTION] [OPTION value=2004]2004[/OPTION] [OPTION value=2005]2005[/OPTION] [OPTION value=2006]2006[/OPTION] [OPTION value=2007 selected]2007[/OPTION] [OPTION value=2008]2008[/OPTION] [OPTION value=2009]2009[/OPTION] [OPTION value=2010]2010[/OPTION] [OPTION value=2011]2011[/OPTION] [OPTION value=2012]2012[/OPTION] [OPTION value=2013]2013[/OPTION] [OPTION value=2014]2014[/OPTION] [OPTION value=2015]2015[/OPTION] [OPTION value=2016]2016[/OPTION] [OPTION value=2017]2017[/OPTION][/SELECT] [/TD][/TR] [TR] [TD width="38%"] [DIV align=center][INPUT class=imgover onclick="amort.doAmortization('form')" type=image height=16 width=75 src="vny!://www.bankrate.com/images_MRA/buttons/calculatebutton.gif" value=Calculate border=0 name=Submit] [/DIV][/TD] [TD vAlign=top width="62%"] [DIV align=left]Monthly Payments: $ [INPUT size=6 value=216.04 name=monthlyPayment] [INPUT onclick=helpText(this) type=button value=" ? " name=monthlyPaymentHelp] [/DIV][/TD][/TR] [TR] [TD align=middle colSpan=2][INPUT type=submit value="Show/Recalculate Amortization Table" name=showAmort] [INPUT onclick=helpText(this) type=button value=" ? " name=amortizationHelp] [/TD][/TR][/TBODY][/TABLE] [TABLE cellSpacing=5 cellPadding=0 width="100%" border=0] [TBODY] [TR] [TD background=/images_MRA/bevel_line.gif colSpan=2][img height=2 src="vny!://www.bankrate.com/images_MRA/spacer.gif" width=1][/TD][/TR] [TR] [TD]Extra Payments[/TD][/TR][/TBODY][/TABLE][/TD][/TR][/TBODY][/FORM][/TABLE]

Lil Me · Apr 13 07 12:36

UGH. I derived the correct formula:
Future Value = 6,000 + 6,000x (assuming an annual compound, not monthly)
and so on... using the previous Future Value as the starting principal

But by the 4th iteration, I can't be bothered to untangle the quadratic.