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What is the monthly payment on a $40,000 loan at 12% for 7 years?

Answer
$706/month
Monthly payment: $706Total interest: $19,313Total cost: $59,31384 monthly payments

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How We Calculated This

M = P × [r(1+r)^n] / [(1+r)^n - 1]

P=$40,000, r=12%/12=1.0000%, n=84. M = $706

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Calculated using verified formulas. Last updated March 2026.