401(k)/403(b) 5 Year Loan Repayment
A client wants to borrow $10,000 from their retirement account. The loan rate is 5% and must be paid off in five years. What are the quarterly payments?
Data Entry
Use the following values for the prompts:
Prompt 
Value 

Calculation Type 
Loan 

Calculate 
Payment Amount 

Loan Value 
$10,000 

Interest Rate 
5% 

Number of Years 
5 

Type of Payment 
Level Payments 

Payments per Year 
4 

Payments Made At 
End of Period 

Balloon Payment 
$0 
The quarterly payments would be $566.92.
In the same example, what would the monthly payments be?
Data Entry
Change the Payments per Year from 4 to 12.
The amount of each payment would be $188.21.
What would the monthly payments start at if the payments increased by 3% per year?
Change Type of Payment from Level Payments to Annual Increase by Percent. Then enter 3% for the Annual Increase in Payment.
The monthly payments start at $181.17.