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Unless you get the lender to agree to an offer, you will pay the balance due for payoff(repo fees, late charges,ect. have likely devoured any reduction in interest you would have seen for early payoff)

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โˆ™ 2015-07-16 19:23:00
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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?
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Related Questions

What amount of money in a checking or a savings account upon which interest is based?

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


How to treat interest on capital while preparing balance sheet?

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At a bank to receive interest is a minimum balance required?

If an account is interest based then any amount is fine


Why do principle and interest varies over time?

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.


What interest applies when interest for each year is based on the amount of the loan or investment?

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.


What is the function of a money market savings account?

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.


Are personal loans offered on reducing balance interest?

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.


Why is more interest charged at the beginning of a loan?

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.


Difference between simple interest and compound interest?

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What is the principal of a loan?

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Who has the best international savings rates?

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Why does inflation restrict the usefulness of the balance sheet?

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.


What is the current interest rate offered at ING direct for a savings account?

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A contractor wins a small claim in Wisconsin court - can he charge interest on the amount?

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If a simple interest car loan is paid off earlydo you deduct interest left on the loan from final payment?

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How much interest will you pay on an account that has a balance of 2033.35 at 3.99 and a balance of 37.55 at 8.91 if your payment is 200.00 and the lower interest rate has to be paid off first?

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Will paying more every month on car loan lower the total cost?

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What does '10 percent Annual Equivalent Rate' mean?

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What are the differences between a current account and a savings account?

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Why does 6.99 APR on your loan when calculated actually mean you will pay 22.88 total interest?

No one advertises an interest rate based on the total interest paid because almost all loans are calculated using a yearly simple interest rate. Your payment is then computed based on paying the loan off on a monthly basis. You can prove this to yourself by dividing the average interest paid by the average balance over a 12-month period.The longer you take to pay a loan off, the greater the total interest you pay for a given interest rate.


Is there scientist that worked with balance?

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What was the original periodic table based on?

the original periodic table was based on th elements it had


Is interest computed differently on revolving credit vs non revolving credit?

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What has the author Olumuyiwa S Adedeji written?

Olumuyiwa S. Adedeji has written: 'Consumption-based interest rate and the present-value model of the current account' -- subject(s): Econometric models, Foreign exchange, Interest rates, Terms of trade 'The balance of payments analysis of developing economies' -- subject(s): Balance of payments, Economic policy


Interest Calculator: Understanding How Interest Works?

At some point in time, you will have to deal with interest. If you have a savings account or a certificate of deposit account, you will be gaining interest. If you have a loan or credit card, you will be paying it. Either way, it is important to understand how interest is figured out. There are two types of interest you should understand. Below is a guide to figuring out simple interest and compound interest. Simple Interest Simple interest is the amount of interest you gain or pay based on a principal balance. The simple interest rate you are given is based on a principal balance. To figure out simple interest, you multiply the principal balance by the interest rate. You then multiply that by the duration. If you want to figure out how much interest you gain after one year, you would use one for the duration. If you want to figure out how much interest you would get after three months, you would use one quarter for the duration. For example, if you have $100 deposited in to a savings account with a 2% interest rate and want to know how much interest you will gain after 6 months, you would set multiply 100 by .02 by .5. That will tell you that you earned $1 of interest after 6 months. Compound Interest Compound interest is similar to simple interest. The difference is that interest is eventually added to the principal. This changes the principal balance after a certain amount of time. The time can vary, but it usually compounds annually. The equation works similarly, except your principal will change. Using the same example above, let's say you want to figure out how much the interest will be after two years. For the first year, your principal would be $100. You would then multiply that by 2%. This means you gain $2 of interest after one year. This then becomes part of the principal. For the second year, you are multiplying $102 by 2%. This means over the course of two years, this means your total interest is $4.04. When calculating interest for credit cards, most companies usually use your average daily balance. Essentially, you would add up your daily balances over the course of a month and then divide that by the number of days in the month. Then, divide your annual interest rate by 365 to get the daily interest rate. Multiply your average daily balance by the daily interest rate. Then, multiply this number by the number of days in the month. That will tell you how much interest you must pay that month.