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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.

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โˆ™ 2015-07-16 19:19:27
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Q: If you pay more than the amount due every month do you still get charged the same amount of interest?
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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.

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What does APR on a credit card mean?

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

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.

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.

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?

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

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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.

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