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Wealth building and loan payment calculator money and finance secrets!We're going to start at the end of the formula! You will see why in a minute. Preparedness in knowing where to plug the figures into the finance calculator will make this second nature! Let's use 5 years as an example, the last part of the formula. 5 years times 365 is 1825 days. This is the number of days in your loan contract. Every loan has and is a contract to borrow and repay money. Wealth building is based on this. Second, take the 5 year period and multiply it by 12. This figure should be 60. 60 months is is not only the number of months you will have the loan, it is also the number of payments you will have in your loan term! Third, we need an amount to borrow. Let's use $5000.00 for our example, ok? Next let's find an interest rate, also known as the APR for Annual Percentage Rate. Every loan and finance option MUST has a disclosed APR by law! We'll use 7.5% for our example. Multiply $5000 by 7.5% or 0.075 and you should have 375. Divide 375 by 365 and you should now have 1.0273972. Multiply 1.0273972 by 1825, our number of days your of your loan contract. You should now have 1874.9998. Round off this figure to 1875 to simplify it for easier use. This amount, 1875, is the amount of INTEREST you will pay for being able to borrow $5000.00! Now add 1875 to 5000 and you should have $6875.00 right? If not go back now and find out where you went wrong in your figures. If you tackle an error now, you will get in the habit of doing it later, ok? Wealth building depends on practising the developement of good habits now! Next take your figure of $6875.00 and divide that by 60, the number of MONTHS you will have your loan AND the number of loan PAYMENTS you will have! Remember that! It is very important! $6875.00 divided by 60.00 is $114.58! Your minimum payment is going to be 114 dollars and .58 cents or $114.58! Simplified, your formula should look like this........ Amount $5000.00 Times the rate 7.5%= 375 Divided by 365=1.0273972 Times the number of days, 1825=1874.9998 or just say 1875. Add $1875, the amount of interest to $5000.00=$6875.00 Divide $6875.00 by 60=$114.58! If you can do this on a regular basis, just for fun it will become a matter of habit that can make you wealthy! Keep repeating this excercise using different figures and amounts until you are so familliar with this formula that you want to take it everywhere! Go back to the first page and bookmark it. This is a very powerful tool that can change your life for the better! Click this link to go back to the first page of
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