Study guides

☆☆☆

Q: If you pay off the balance on your repossessed car to get it back do you have to pay the balance owed with interest based on the original 5 yr loan?

Write your answer...

Submit

Still have questions?

Related questions

The amount of money in a checking or a savings account is the balance. The interest is usually based on the balance.

If an account is interest based then any amount is fine

Interest on capital is added on the capital account in balance sheet as interest incurred from capital is based on business entity assumption.

The answer is called amortization. In a typical loan payment, interest is calculated based on the outstanding principle balance. When the periodic payment remains constant the amount of that payment allocated to interest declines as the principle balance is reduced.

When each interest calculation uses the initial amount, this is called Simple Interest. The other type is Compound Interest, which uses the current balance as the basis for interest calculation.

The function of a money market savings account is to earn a higher interest on your balance. Interest is based on current rates in the money markets. A minimum balance is usually required for investment.

Yes most banks charge interest based on reducing balance. Repayment plans are flexible and usually it starts from 12, 24 an 36 months. Many banks give attractive interest rate of both flat and reducing balance per month it makes life simple.

The interest is based on the amount owed, therefore as payments are made the balance drops as does the interest amount (not the rate). So the interest is higher at the begining, because more money is owed at the begining.

Simple interest is based on the original principle of a loan. Simple interest is generally used on short-term loans. Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.

There are several good international banks with good rates. The amount of interest you receive will be based on your balance amount.

Most of the values are based on historical or original price. The balance sheet does not account for inflation, therefore the numbers will be incorrect when it comes to the actual price of inventory.

The money you owe.You pay the principal, plus interest (rent for using someone else's money) to repay the loan.The principal is normally the amount borrowed, which is reduced by paying any amount exceeding the interest.The principal is the original amount that you borrow. It is usually set for an equal payment amount which includes the interest charge for the period. The principal decreases each time you make a payment as the interest amount due is based on the loan balance at the interest rate of the note.Easy example would be:You borrow $1000 @ 10% interest monthly. Monthly payment is $150.Month 1 - Interest is $100 so $50 would be deducted from principal, new balance is $950.Month 2 - Interest is $95 so $55 would be deducted from principal, new balance is $855.Month 3 - Interest is $85.50 so $64.50 would be deducted from principal, new balance is $790.50.Month 4 - Interest is $79.05 so $70.95 would be deducted from principal, new balance is $719.55.Month 5 - Interest is $71.15 so $71.96 would be deducted from principal, new balance is $647.59.A much easier way is to print an amortization schedule.

People also asked