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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?

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

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?

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.

What is the principal of a loan?

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.

Who has the best international savings rates?

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

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?

All savings accounts in India offer an average of 3 to 3.5% interest per annum calculated on a daily end of day account balance basis. The interest is calculated based on the every day balance in the account and would be credited on a quarterly or half yearly basis.

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

Yes, but interest must be included in the original small claim suit. E.G. suing for 18,000 dollars, plus interest. The judge will set the interest level or amount based on the state statues.

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

loan is 3 year loan with an annual interest of 6.3% and you make monthly payments. Therefore each interest amount will be based on a one month period and thus 1/12 of the annual interest rate. Balance = 10,000 Monthly Interest Rate = 0.525 % 1 months interest = 10,000 * .00525 = $52.50 Your monthly payment is $305.58 Amount applied to balance = 305.58 - 52.50 = $253.08 New Balance = 10,000 - 253.08 = $9,746.92 Next month the interest will be calculated on the new lower balance and your intest payment will be $51.17. so you would have to figure that out by how many pmnts you've made BTW: This doesn't take into account any finance charges, billing charges, etc.

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?

Approximately $45 if you continue to pay $200 every month until payoff (assuming this is a credit card, this is based on ignoring the ever-decreasing minimum requested), and do not add to the principle balance with either more purchases or fees.

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

Yes it will. They car will be paid off earlier and interest will not be as much based of the total balance.

What does '10 percent Annual Equivalent Rate' mean?

Annual Equivalent Rate - AERInterest that is calculated under the assumption that any interest paid is combined with the original balance and the next interest payment will be based on the slightly higher account balance. Overall, this means that interest can be compounded several times in a year depending on the number of times that interest payments are made.In the United Kingdom, the amount of interest received from savings accounts is listed in AER form.Calculated as:Where:n = number of times a year that interest is paidr = gross interest rateInvestopedia Says:For example, a savings account with a quoted interest rate of 10% that pays interest quarterly would have an annual equivalent rate of 10.38%. Investors should be aware that the annual equivalent rate will typically be higher than the actual annual rate calculated without compounding.Above retrieved from Answers.comViper1

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

current account (C.A.) savings account (S.A.) C.A - no interest S.A - earns interest based on minimal monthly balance C.A - overdraft allowed S.A - No overdraft (mostly - except some banks) Overdraft means, once in a while they are allowed more money than what they have in the account, as long as they repay it with interest C.A - No minimum balance S.A - Minimum balance requirement C.A - Preferred by business S.A - Preferred by individuals for interest folks for overdraft facility

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?

the whole control engineering is based on balance

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?

Yes. Interest accrual methods will depend heavily on the specific loan type. Different revolving accounts may be calculated differently, as will different fixed loan types. Most commonly, a non-revolving loan may be "simple interest" where interest is calculated daily based on the principle loan balance, or may be "amortized" where a set amount of interest is charged each month based on calculations made when the loan was granted. Lenders may also use a slightly different calculations due to the days-in-year their system charges interest on (365/360 etc). A revolving credit account interest rate may be compounded (commonly used for credit cards) where you pay interest in the total account balance daily (so you effectively pay interest daily on interest you accrued the day before), simple interest (interest charged daily on the principal loan balance), or one of several other more obscure interest calculation methods. There are some loan types, both fixed and variable that require payments less than the amount required to satisfy interest due. These "negative amortization" loans charge interest on unpaid principal and interest while adding the unpaid interest to the loan balance. These loans became notorious as a major factor in the mortgage and housing market collapse that became widespread in 2007.

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.