Best Answer

NO, you should actually pay LESS interest over the period of the loan. You will actually pay it off sooner.

If you are paying more then you need to specify to the dealer that you would like all overpayments to go twards the princeple not the interest which by lowering the princeple will automaticly lower the interest.

User Avatar

Wiki User

โˆ™ 2015-07-16 19:19:27
This answer is:
User Avatar

Add your answer:

Earn +5 pts
Q: If you pay more than the amount due every month do you still get charged the same amount of interest?
Write your answer...

Related Questions

What is simple interest and compound interest?

Compound interest is when interest is charged on the principal plus the interest. An example is a credit card debt. If you carry a balance from month to month you are charged interest on the total amount owed including the interest from previous months. Simple interest is calculated on the amount borrowed over a fixed amount of time and does not charge interest on the interest.

Is the amount charged for use of bank's money is called interest?

Yes. The amount a bank charges you for using their money is called an interest. This facility wherein you get to use the banks money and repay them is called a Loan. The bank grants you a fixed amount as loan and you repay them every month along with an interest.

How can you show that more interest is paid at the beginning of a loan period than at the end?

Interest is computed on the remaining balance monthly..If you have a credit card balance and pay exactly every 30 days, you will see that the interest charged is reduced by a small amount every month.

How much interest rate every month will be received for 10 million pesos?

The interest rate and the amount of interest received each month will depend on the investment agreement.

Determine the amount of interest charged on S Carter's account during the second month S Carter's account?


How do compound interest help increase the savings of bank customers?

Banks do not offer compound interest on the money deposited into the savings accounts. They offer only simple interest. However, this interest is compounded every month or quarter in order for the customer to gain full benefits of the same. Ex: let us say you hold Rs. 10,000/- in your bank account and as per the prevailing interest rate of 3.5% for a savings account, your interest for the first month will be 29.17 rupees. If the interest is compounded every month, the principal amount used for calculation of interest for the second month will be 10,029.17/- and the effective interest you earn the second month will be Rs. 29.25/- this way the interest will get added up with the principal amount every month to earn a extra few rupees into your account as interest.

What does a bank charge you when you borrow money from it?

When you borrow money from a bank, you are charged interest. interest is a fee for the use of someone else's mony and is usually a percentage of the amount of money borrowed. It is charged and paid each month, week, or day on the amount of borrowed money that has not yet been repaid.

What does APR on a credit card mean?

APR = Annual Percentage Rate. It's the amount of interest charged over a 12-month period.

Why would someone want to pay off the balance of their credit card each month before interest is calculated?

You might save money by paying the amount you have charged before the interest is calculated.

How do I calculate the interest rate I am being charged on my mortgage loan?

Loan Amount : Rs. 100000/- Loan Taken On 15.05.2006 EMI Amount : 3762/- Per Month Loan Period " : 37 Months Please find the rate of interest

When do you get interest on acww ds?

you get interest on the first day of every month.

What is the amount you will get after 5 year if you deposit Rs 1000 per month?

You'll get 60,000 rupees if you save 1000 every month for 5 years and this is apart from interest

Simple question--how do you figure the amount of money paid to me monthly with a CD aCCOUNT?

You can use the below formula: P - The amount of money you deposited N - No. of years deposited R - Rate of Interest Offered by the bank. Interest = P * N * R / 100 Substitute the amount you want to deposit and the rate of interest on your CD in the formula. Also, here you must take N as: 0.0833 because you want to calculate every month. You'll get the interest you'll get every month.

What are the different types of interest earned on principle?

simple(interest is earned on the original principal) $100 earning 10% per month with earn $10 every month and compound(interest is compounded every set amount of time e.g. monthly and a new principal is derived) $100 earning 10% per month compounded monthly will earn $10 the first month after which it is compounded making the new principal $110 the next month will earn $11 and so on

How do you change interest into bells on Animal Crossing?

It automatically adds interest to your account every month.

How much money is a mortgage each month?

The amount of mortgage each month will depend on the amount of money borrowed, the duration and APR interest on the amount. You will need these figures to calculate the amount

What is the term that describes the amount you pay to have insurance each month?


How do credit card payments work?

When you use a credit card to purchase something, you are making yourself a loan through the credit card company. You have to pay the company back for this loan at the terms you have agreed to when you signed the application for the card. If you make a payment in full when you receive your monthly bill, there will be no additional amount due, no interest, and usually no handling fee. When you make a partial payment, whether it is the minimum due, or a larger amount, the company will charge interest, and perhaps a monthly fee, which will be added to the next monthly bill. As long as the amount you pay is less than the amount due, you will continue to be charged interest every month, based on the balance remaining. If you pay the entire amount due at the end of the month, there will be no new interest charges. There might be a small amount of interest on the previous balance. Often, if you call the company and point out that you paid the previous bill in full, they might waive the final interest due.

Do you get charged for minecraft every month?

No, its a one-time pay for this epic game.

How is electricity charged from the power company?

It is usually charged by the kilowatt hour which the company gets from reading your meter every month.

What are the benefits of fixed interest rate mortgages?

A fixed interest rate mortgages means that one pays a fixed amount of interest each month which is the same. The benefits are that one always knows how much is being paid as it is not variable. The amount depends on the amount of loan borrowed and the length of the loan term. If the interest rate changes, then this will not affect the amount being paid each month.

How much interest only payment can one pay for a home equity line of credit?

The amount of the interest payment depends on two things which are, the loan amount and the interest rate. Normally, if your payment is set up to pay interest only then the amount of the payment would be the total amount of interest earned in one month.

How can you calculate the actual amount of interest paid on a credit card each month?

Its is 1,000,000,000,000

How do you calculate Interest rate if loan amount and monthly payments and loan amount is given?

17k 300 per month

How much will the payment in the month for a new motorcycle?

Depends on the amount you borrow, length of the loan, and interest rate. $205.00 a month is not unusual.