Interest rate?

If there's an interest rate given e.g. 8% annual rate but we have to find monthly payments for 4 yrs., how is the rate changed from annual to monthly?


E.G. for finding annuity, I'll put in 48 months but what is the 8% yearly interest rate going to be?





Thanks|||How much is the loan for/annuity balance that is how you would figure it out. Using a financial calculator, and assuming you make the payments at the end of the month, your payment amount would be $243.75 a month on a $10,000 loan and 48 monthly payments. If we are talking an annuity and you want to know how much to put in you need to know a Future Value. To anwser this question you are missing information. First you need either a present value or some future value. You need the interest rate (I/Y), you need the number of monthly payments (n). Another option is to calculate the Holding Period Yield for each month based on the 8% Effective Annual Yield.





It could also be as simple as 8/12=0.66% monthly.





Your question doesn't make sense though, more information is needed to figure out your particular case.





Edit: To anwser the specific example you added. The answer is: $ 732.95 per month. Using a financial calculator to get the payment, N=48, I=0.66 (8/12), PV= 30,000, FV=0 then just compute payment. Hope that helps!