And if so, how can I figure it out on my own?
2007-09-28 09:30:39 · 10 answers · asked by J Lo 1 in Politics & Government ➔ Law & Ethics
I hope your not being charged monthly interest, the interest should instead be annually.
So to get to your payment amount you would first need to divide your APR (Annual Percentage Rate) by 12 to determine your monthly interest.
We then would need to know the term of your loan. I am making an educated guess (based on the amount you think your payment is) that the term of your loan is 36 months.
A $1512.62 loan w/ 23% APR for 36 months would equal a monthly payment of $58.55.
2007-09-28 09:38:35 · answer #1 · answered by labken1817 6 · 1⤊ 1⤋
you need to know the term of the loan and if it is amortized, meaning you pay back the principle a little at a time, or if its just a simple interest loan.
23% monthly interest would be an interest rate of 276% per year, so I imagine that what you are really doing is making a monthly payment based on a 23% annual interest rate.
If its a simple interest only loan, you will pay 23/12 or 1.917% interest each month. that payment would be $28.99. So I assume the remainder of the payment would be a payment against the principal on the loan, meaning that next month, you would pay 1.917% of $1512.62-(57.50-28.99) in interest and whatever principle payment your contract requires. If they charge you the same $57.50 each month, its probably an amortized loan. If the payment keeps changing, its probably a revolving charge or credit card style debt.
Good luck
2007-09-28 16:40:52 · answer #2 · answered by John M 7 · 0⤊ 0⤋
Wait, what does "monthly interst" mean? You mean that the interest rate is 23% per YEAR compounded monthly, right?
If so, you use the compound interest formula:
http://qrc.depaul.edu/StudyGuide2007/Notes/Savings%20Accounts/Compound%20Interest.htm
Compound interest formula
And I get that you should be charged $28.99 in interest on the first month. Of course, it gets to be more than than each month if you're not making payments, because the interest is compounding.
(Another way to do it is take 23% (.23) divided by 12 (to see what the interest is per month), and you get .01917. Multiply that by the principal, 1512.62, and you get 28.99)
If you mean that you're charged 23% PER MONTH interest (who would EVER agree to this), then it's simple math:
1512.62*.23 = $347.90
I'm guessing that you mean 23% APR (still REALLY REALLY high) compounded monthly.
2007-09-28 16:42:33 · answer #3 · answered by Perdendosi 7 · 1⤊ 0⤋
Probably. You must remember that they don't just take your balance on your billing date and multiply it by 23% and divide by 12. The interest compounds daily. So, if you don't pay off your bill completely each month, the carryover balance accrues interest every day and that interest is added to the next day's total for the purpose of computing more interest.
2007-09-28 16:34:45 · answer #4 · answered by lechisch 2 · 1⤊ 0⤋
That was about 2 months worth of interest. You can basically get the amount by multiplying principle by .23 then dividing that number by 12.
2007-09-28 16:34:49 · answer #5 · answered by the Boss 7 · 0⤊ 1⤋
Depend on how much of the principle is included. The interest payment is $28.99
2007-09-28 16:35:50 · answer #6 · answered by LIL_TXN 4 · 0⤊ 0⤋
Are you sure it's MONTHLY interest? 23% of 1512.62 is $347.90 (1512.62 x .23) so no, it's not right.
2007-09-28 16:36:04 · answer #7 · answered by Juan A 3 · 0⤊ 0⤋
It depends on what kind of balance it is. If it is a rolling balance, then that figure sounds right. If it is a one-time balance, then that figure is WAY off.
2007-09-28 16:38:40 · answer #8 · answered by Anonymous · 0⤊ 0⤋
listen to lechisch.
2007-09-28 16:39:24 · answer #9 · answered by Anonymous · 0⤊ 0⤋
No, and do your own homework!!!!!
2007-09-28 16:33:30 · answer #10 · answered by jmdavis333 5 · 1⤊ 0⤋