If i borrowed 1400$ with a 29.99% APR what does that mean for me on a monthly payment basis?

Question

If i borrowed 1400$ with a 29.99% APR what does that mean for me on a monthly payment basis?

Answer 1

Interest rates are calculated on a yearly basis so:

29.99% of 1400.00 is 419.86 per year. So divide the annual payment by 12 and you will get your monthly interest: 34.98.

But of course anything that you pay over and above the 34.98 will bring down the principal of the loan. So if your payment is 100.00, after the first month you would have 1334.98 left to pay on the loan.

It gets more complicated depending on how the loan is set up. They may have it compound monthly which means that they recalculate the amount of interest you pay every month. This is bad because you are now paying interest on the interest you have already paid

Answer 2

A mortgage calculator should do the trick: http://bankrate.com/brm/mortgage-calcula...

Answer 3

29.99, good god. I hope it wasnt for something stupid.

Answer 4

you better refinance, for 24 months your paying 1400 in interest! 223.63 a month my friend. your getting robbed

Answer 5

i would have to know for how long the loan was for