How much would you typically pay back for a loan of $1000 over six months?

Question

How much would you typically pay back for a loan of $1000 over six months?

Answer 1

with out any interest charges it is 166.67 per month

Answer 2

Depends on your interest rate.  If your rate is 5% annually, then you would take the 1000 x .05 to determine the monthly interest rate ($50).  Then multiply that times the number of months to pay it off ($50 x 6 = $300).  So to pay back a $1000 loan at 5% annual percentage rate (APR) in 6 months time, you'd pay a total of $1300.  Divided into equal payments that would be $216.67 per month for 6 months.