I doing some work on a client website, however I'm finding it difficult to calculate the correct interest amount.
- I have the principle amount, for example £200
- The loan is repaid over 3 months in monthly instalments
- I have an annual interest rate 264% (fixed), so a monthly interest rate is 22%
- The loan is repayable in equal instalments
I want to calculate the monthly repayment amount
Interest is only payable on the outstanding balance, so on the first payment:
Balance = starting balance + interest - repayment
I can work out interest ok, but I'm unsure of the work out the repayments so the balance can be reduced accordingly.