This is the formula to use if you want to determine the *total amount* you will pay for a loan.

If we borrow $100,000 for 10 years at 8 per cent annual
percentage rate, what is the *total cost* of the loan (principal plus interest) ?

1) The rate would be 8 divided by 1,200

which equals .0066666666...

2) The months would be 12 × 10 = 120.

3) So the total cost of the loan would be: