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Name:Date: Personal Finance Cycle 3: Loans and Repayment Using bankrate.com and their loan calculators read the following scenarios and answer the questions at the end of each?1. Mr. Santos needs
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01
To fill out how to calculate loan, follow these steps:
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Gather all necessary information related to the loan, such as principal amount, interest rate, and loan term.
03
Determine the type of loan you are dealing with, whether it's a fixed-rate loan, adjustable-rate loan, or any other type.
04
Use the appropriate loan calculation formula to calculate the monthly payment. For example, for a simple interest loan, you can use the formula: Monthly Payment = Principal * (Interest Rate/12) * (1 + (Interest Rate/12))^Number of Payments / ((1 + (Interest Rate/12))^Number of Payments - 1).
05
Plug in the values into the formula and do the necessary calculations to find the monthly payment amount.
06
If required, calculate additional information such as the total interest paid over the loan term or the total cost of the loan.
07
Double-check your calculations to ensure accuracy.
08
Fill out the loan calculation form or document with the calculated values.
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Review and verify all the information before submitting the filled-out form.

Who needs how to calculate loan?

01
Anyone who is planning to take a loan or wants to understand the financial implications of a loan would benefit from knowing how to calculate loan.
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Financial professionals, bankers, loan officers, and individuals responsible for loan approvals can also benefit from understanding the loan calculation process.
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Additionally, individuals who want to compare different loan options, evaluate the affordability of a loan, or plan their budget around loan payments would find calculating loans helpful.
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It is also essential for anyone who needs to provide accurate loan-related information to clients, customers, or stakeholders.

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To calculate a loan, you need to determine the loan amount, interest rate, number of payments, and the loan term. The formula used is typically: M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments.
Anyone applying for a loan, whether an individual or business, is typically required to provide necessary documentation and calculations regarding the loan details to the lender.
To fill out a loan calculation, you usually need to input the total loan amount, the interest rate, the loan term (in months or years), and then use the loan calculation formula or online calculator to determine the monthly payments.
The purpose of calculating a loan is to understand the total cost of borrowing, determine monthly payment responsibilities, and help in financial planning to ensure the borrower can meet their repayment obligations.
Information such as the total loan amount, interest rate, loan term, monthly payment, payment schedule, and the total cost of the loan must be reported when calculating a loan.
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