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Chris Degnen
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The effective annual interest rate is given by

ear = (1 + i/n)^n - 1

where i is the nominal interest rate and n is the number of compounding periods.

ear = (1 + 0.1/12)^12 - 1 = 0.104713 = 10.4713 %

The monthly rate is

r = (ear + 1)^(1/n) - 1 = 0.00833333 = 0.833333 %

The monthly repayment is given by

p = r*pv/(1 - (1 + r)^-n)

where pv is the present value of the loan

p = 0.00833333*1000/(1 - (1 + 0.00833333)^-12) = 87.9159

This gives a total repayment of p*12 = 1054.99

Chris Degnen
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