/biz/ - Business & Finance

That means there's 10% interest on the loan yearly dipshit

making larger payments on a loan results in a lower amount paid towards interest

>>12176831
rude, i already said i was a brainlet.

>>12176831
You didn't answer his question

>>12176822
under most circumstances, you'd pay less. when taking a loan you should if there are any early payoff penalties. if the loan is longer in duration, you'll want to understand the amortization table to understand how much interest vs. principal you're paying each month, and then you can calculate how advantageous it'd be to pay it off early.

>>12176822

Search "compound interest" anon. And the answer is, it's less.

>>12176822
>One year passes
You owe 110% of the loan

>Two years pass
You owe 121% of the loan (110 + [110 x .1])

>Three years pass
You owe 133% of the loan (121 + [121 x .1])

>>12177113
You didn't read the question.

>>12176822
Depends on the payment period and compounding it. What was the term of the loan? Are there pre-payment penalties?

10% Interest per year, with monthly payment periods means you are paying 0.833% per month in interest on your balance.

>>12176822
thanks for the reminder that i need to mow the lawn

God she's so hot its unreal REE.

>>12176822
She looks like leafyishere

>that armpit hair
i have never desired anything more intensely than this woman in my entire life

>>12177513
You sicken me.

holy shit that armpit hair

>>12177525
you probably don't even eat your woman's ass you low test faggot, get the fuck out of my board

>>12176822
who the fuck is she.moar

>>12177742
this pic is so old she has nosehair and mustache now

>>12176822
With Amortized Loans, you make a set Payment amount each month. Of that Payment amount, some is allocated to Interest, and what remains is allocated to repaying the Principle.

Assuming it's an Amortized Loan, it'll probably go something like this:

1. Divide 10% by 12 months to get how much in Interest you'll pay per month. (10 / 12 = 0.833%)

2. After end of First Month, you'll pay a set amount: X. Of amount X, the amount allocated to Interest will be: 0.833% x Balance, the amount allocated to Principle: X - Interest.

3. You will now have to recalculate your Balance, to account for the Principle you just repaid. And so, from Balance you'll subtract the calculation you just did to find out how much of X was allocated to Principle: X - Interest.

4. At the end of the Second Month, repeat the exact same calculations, except this time you'll use the New Balance you just calculated above, when calculating Interest (Balance x 0.833%).

At the end of the Third Month, I assume you'll pay off you Interest for that Month, along with any penalties, along with the remaining Balance.

https://www.investopedia.com/terms/a/amortized_loan.asp

>>12177742
look up "world naked gardening day", it's a hint from past threads but i didn't find her set

>>12176822
WHO IS SHE??????

>>12176939
This. The bank will certainly be making profit either way you do it.

>>12177513
My brother of superior taste

>>12177513

>>12178140
>she

>>12177742
https://4archive.org/board/r/thread/15548409/this-girl-cleocuntra-used-to-be-on-tumblr-but-deleted-her-stuff

>>12178860
God this website is infested with add.

>>12178860
not worth the click, save yourself the trouble and save whoever made this garbage webpage the advertising jewbux

10% yearly means 10/12=0.83% monthly, so you would pay 3x0.83=2.5% interest if you paid it all back in 3 months.

Less, since 10% a year is just .83% a month