Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy AND NEITHER CAN THE AUTHOR

its 20% APR, which is 200 dollars a year.

20% a month is for like Title Pawns... lol

20% You will pay $111.61.

You pay interest on the declining balance.
-----------PAYMT---PRINC----INT-TOT INT---BAL
Aug.--2016-$92.63-$75.97-$16.67--$16.67-$924.03
Sept--2016-$92.63-$77.23-$15.40--$32.07-$846.80
Oct---2016-$92.63-$78.52-$14.11--$46.18-$768.28
Nov---2016-$92.63-$79.83-$12.80--$58.99-$688.45
Dec---2016-$92.63-$81.16-$11.47--$70.46-$607.29
Jan---2017-$92.63-$82.51-$10.12--$80.58-$524.77
Feb---2017-$92.63-$83.89--$8.75--$89.33-$440.89
Mar---2017-$92.63-$85.29--$7.35--$96.68-$355.60
April-2017-$92.63-$86.71--$5.93-$102.60-$268.89
May---2017-$92.63-$88.15--$4.48-$107.08-$180.74
June--2017-$92.63-$89.62--$3.01-$110.10--$91.12
July--2017-$92.63-$91.12--$1.52-$111.61---$0.00

Last Edited by TidesofTruth on 07/12/2016 11:42 PM

Ok, I see what you are saying.

How the fuck did the author fuck that up? lol

how exactly did you calculate the Payment amount? Did you start with 1200 and work backwards over 12 months?

err ignore my second question...lol

how though?

When you take out a loan you start with the principle and interest is compounded daily against the principle
and added to it. Then when a payment is made the principle decreases and the interest is compounded on the new principle daily. But you not take 20% from the beginning of the loan and add it to the total. The author is a financial illiterate.

I believe its called "Rule of 72" or something.

Depending on how long you amortize it.

You will see the interest is paid first, the principal amount is paid last.

Until you reach the mid-way point where 50% of the amortized payment is interest and 50 percent of the amortized payment is principal you are clearly paying a majority to interest?

u wudnt owe nuffin! 20% is proly all i owes.

Wrong, wrong, wrong.