Say there’s a loan for $10,000. The interest rate is 11%. Monthly payment is $300.
How can you keep interest at bay, and not pay thousands in interest by the end of it all?
Is there a formula to figure out how much *extra* to pay per month, in order to… cancel out? the interest?
Is this even possible? Is this even how interest works?
Honestly, I don’t get the concept at all. Explain it to me like I’m five.
In: Economics
$10,000 x (11%/100) = $1,100
That’s how much you have to pay per year to cover just the interest so the amount owed doesn’t increase.
($1,100 / 12 = $91.66 per month)
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