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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.
What else can I help you with?
What is the average mortgage payment on 130000?
I don't think there is a such a thing as an average mortgage payment on any given dollar amount. The principal and interest payment depends on several factors besides the loan amount, primarily the interest rate and loan term(length of the loan). To keep it simple, a 130,000 mortgage at 4.5% for 30 years would be $658.69 for your principal and interest payment. If you could afford to do a 15 year loan, at the same interest rate, the monthly payment would be $994.49 and you would save nearly $60,000 in interest. If you change the interest rate, the payment could change significantly also.
What is something that refers to the payment made for the use of money?
The payment made for the use of money is referred to as "interest." It is the cost incurred by borrowers for the privilege of using someone else's funds and is typically expressed as a percentage of the principal amount over a specific period. Interest can be categorized into simple interest, which is calculated solely on the principal, and compound interest, which is calculated on the principal plus any accrued interest.
Why is there more interest paid at the beginning of a loan period than at the end?
In a simple interest loan, you are paying interest on the amount of money you have borrowed in each payment period. When you make a payment, a certain amount of it goes to repay the loan, reducing the principle. In the next payment period, your interest is being calculated on a smaller amount borrowed. In the first payment, you are paying interest on the entire amount borrowed. In the next payment, you are paying interest on the amount borrowed minus the principle amount from the first payment. That's why paying extra principle early in the life of a loan can make a big difference in the time it takes to pay it off. In a 30 year home mortgage for example, in the first year the principle will be reduced by about the amount of one month's payment. If you make an extra payment toward the priniciple equal to one month's payment, you will have effectively gained an entire year in the retirement of the loan.
How do I Calculate interest for a late payment on a simple interest loan?
You would multiply the rate of interest by the amount owed by the amount of time the payment is late. For example if you have a payment due of 100 dollars and it is 6 months over due at an interest rate of 5% annually you would first calcuate what is the monthly interest rate by doing .05/12 which would be .00417. Then you would multiply the amount owed (100) by the monthly interest (.00417) by the number of months (6). 100x.00417x6= 2.502 Therefore you would now owe $2.50 of interest plus the original amount due 100= $102.50.
What is a simple interest loan and how does it work?
Interest is calculated day to day from payment receipt to payment receipt. The due date only has to do with reporting to credit. I suggest if you have one of these types of loans you should be on a monthly draft with your lender. Payments are split to Interest 1st (calculated on the unpaid balance on a per diam rate), escrow (if you have it), interest deficit (if you have accumulated one), then to Principal. If you made a payment on Jan 1, and didnt make another till Feb 15th, that's 45 days of interest you are going to have to pay. If that interest charge is more then the amount of money you send-- you have an interest deficit. You will get NO money to principal until that deficit is paid back.
What is a yearly payment of simple interest?
It is the capital multiplied by the interest rate (in %) divided by 100.
What calculates the payments for loan based on constant payment at a constant interest rate?
Simple interest.
Does ms have interest on late child support payment?
Yes, 3% simple
What is the monthly payment for the simple interest amortized loan of 5000 at 4.5 for 4 years?
To calculate the monthly payment for a simple interest amortized loan of $5,000 at an interest rate of 4.5% over 4 years, first determine the total interest: ( \text{Interest} = 5000 \times 0.045 \times 4 = 900 ). The total amount to be repaid is ( 5000 + 900 = 5900 ). Dividing this total by the number of months (48 months for 4 years) gives a monthly payment of ( \frac{5900}{48} \approx 122.92 ). Thus, the monthly payment is approximately $122.92.
What is the yearly interest payment on a 32500 loan having an interest rate of 7 percent calculate as simple interest?
32500 is 325 "hundreds" so 7 times that ie 2275 is your annual interest.
What is the average mortgage payment on 130000?
I don't think there is a such a thing as an average mortgage payment on any given dollar amount. The principal and interest payment depends on several factors besides the loan amount, primarily the interest rate and loan term(length of the loan). To keep it simple, a 130,000 mortgage at 4.5% for 30 years would be $658.69 for your principal and interest payment. If you could afford to do a 15 year loan, at the same interest rate, the monthly payment would be $994.49 and you would save nearly $60,000 in interest. If you change the interest rate, the payment could change significantly also.
What payment 6 months from now would be equivalent in value to a 8825 payment due 11 months from now The value of money is 4.5 simple interest. Round your answer to 2 decimal places.?
To find the equivalent payment 6 months from now for an $8825 payment due 11 months from now at a simple interest rate of 4.5%, we first calculate the interest for the 5-month period (from 6 months to 11 months). The interest can be calculated as ( I = P \times r \times t ), where ( P = 8825 ), ( r = 0.045 ), and ( t = \frac{5}{12} ). Calculating the interest: [ I = 8825 \times 0.045 \times \frac{5}{12} \approx 16.57 ] Now, subtract this interest from $8825 to find the equivalent payment 6 months from now: [ Equivalent Payment = 8825 - 16.57 \approx 8808.43 ] Thus, the equivalent payment 6 months from now is approximately $8808.43.
What is something that refers to the payment made for the use of money?
The payment made for the use of money is referred to as "interest." It is the cost incurred by borrowers for the privilege of using someone else's funds and is typically expressed as a percentage of the principal amount over a specific period. Interest can be categorized into simple interest, which is calculated solely on the principal, and compound interest, which is calculated on the principal plus any accrued interest.
What is the difference between a complex and a simple interest?
With simple interest the interest is only charged on the original loan. This is least favourable to lenders - if a payment is missed, only interest on the original loan is added. If extra interest is paid off, or an interest payment is missed, the total interest for a year remains the same. With compound interest, interest is charged on the original loan and [unpaid] interest - each month no repayment is made the interest increases as the interest is effectively added to the loan: lenders like this as they are automatically "re-lending" the unpaid interest. Complex interest is a type of compound interest in that for the duration of the loan repayments are made so that with each payment, the interest accrued so far is paid off and some of the capital is also paid off. The net effect of this is to reduce the loan outstanding each month so that the amount of interest due each month also decreases - if the same amount is paid back each month over the course of the loan the initial payments are mostly interest and the final payments are mostly loan. Examples: £5,000 borrowed for 5 years at 10% APR. Loan to be paid off after 5 years. Simple interest: total interest paid is 5 x £5,000 x 10% = £2,500 Compound interest: (1.1)^5 x £5,000 - £5,000 = £3,052.55 Complex interest: (monthly payment set to clear loan at end of 5 years): Monthly payment = £5,000 x (1.1)^5 x ((1.1)^(1/12) - 1) / ((1.1^5 - 1) ≈ £105.18 → Total interest = £105.18 x 12 x 5 - £5,000 = £1,310.80 (this slightly overpays by about 17p due to rounding) In this case the first payment is £39.87 interest and £65.31 loan, the last payment is 83p interest and £104.18 loan [and 17p excess due to rounding])
How would the total payment on a 5-year loan at 3 percent annual simple interest compare with the total payment on a 5-year loan where one-twelfth of that simple interest 0.25 percent is calculated?
In the first case you will get 1+3%*5 = 1.15 times the capital. In the second, you will get 1+0.25%*5 = 1.0125 times the capital
What output will a simple mortgage calculator give me?
A simple mortgage calculator will give you the amount of your monthly payment. It may also break it down in to what part is interest and what part goes toward the principal.
What is the Formula for simple interest rate?
The answer for rate in simple interest is =rate= simple interest\principle*time
