Beat my father-in-laws savings rate

[Wrangler_Mom]

My father in law has money in ING. We are borrowing from him. What would the monthly interest on $60,482.38 at 6% accrued daily and compounded monthly be?

This loan amount will go down quickly so we're thinking it would not be wise to set a 5, 7, etc year loan but just to beat his current interest of 3.8ish.

How the heck do we calculate this? Or would it be simpler (better for him) to go w/a 5yr loan? And then just re-do it every time we pay a "chunk"? Maybe 5,000. Maybe 10,000. We just don't know. Any help is appreciated!

[sweeps]

3.8% is the APY: Annual Percentage Yield. No need to figure compounding because the APY already includes it. So the monthly interest is 60482.38 * .038 / 12 = $191.53.

[Ima saver]

That is what the father in law is earning on that amount now, $191.53. But if they borrow at 6%, they need to pay him $302.41 in interest the first month, and refigure it every time they make payment on the principal.
$60,482.38 x .o6 divided by 12.

[jmjj215]

Excel could be pretty handy in this situation so you could plug in different numbers and see the results immediately.

[Ima saver]

I have to do every thing by hand, I don't know how to use a computer.

[shelbylovesmelby]

you can go to most any financial website that does loans & look 4 a loan calculator or just do a search for one.