How is the amount of interest paid calculated

Question

Aidan Stevenson

Law

4 March, 16:51

How is the amount of interest paid calculated

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Valentino Gallagher · Answer 1

Answer:which for the first payment, will be your whole principal amount.

Explanation:Divide your interest rate by the number of payments you'll make in the year (interest rates are expressed annually). So, for example, if you're making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.